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INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 1
CHAPTER - 1
INDUSTRY SCENARIO
1.1 INDUSTRY PROFILE
Fertilizer (or fertiliser) is any organic or inorganic material of natural or synthetic
origin (other than liming materials) that is added to soil to supply one or more plant
nutrients essential to the growth of plants. Conservative estimates report 30 to 50% of
crop yields are attributed to natural or synthetic commercial fertilizer. Global market
value is likely to rise to more than US$185 billion until 2019. The European fertilizer
market will grow to earn revenues of approx. €15.3 billion in 2018. Mined inorganic
fertilizers have been used for many centuries, whereas chemically synthesized
inorganic fertilizers were only widely developed during the industrial revolution.
Increased understanding and use of fertilizers were important parts of the pre-industrial
British Agricultural Revolution and the industrial Green Revolution of the 20th
century.
Inorganic fertilizer use has also significantly supported global population growth — it
has been estimated that almost half the people on the Earth are currently fed as a result
of synthetic nitrogen fertilizer use.
Fertilizers typically provide, in varying proportions:
 Six macronutrients: nitrogen (N), phosphorus (P), potassium (K), calcium (Ca),
magnesium (Mg), and sulfur (S);
 Eight micronutrients: boron (B), chlorine (Cl), copper (Cu), iron (Fe),
manganese (Mn), molybdenum (Mo), zinc (Zn) and nickel (Ni) (1987).
The macronutrients are consumed in larger quantities and are present in plant tissue in
quantities from 0.15% to 6.0% on a dry matter (0% moisture) basis (DM).
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Micronutrients are consumed in smaller quantities and are present in plant tissue on the
order of parts per million (ppm), ranging from 0.15 to 400 ppm DM, or less than 0.04%
DM. Only three other structural elements are required by all plants: carbon, hydrogen,
and oxygen. These nutrients are supplied by water (through rainfall or irrigation) and
carbon dioxide in the atmosphere.
Management of soil fertility has been the pre-occupation of farmers for thousands of
years. The start of the modern science of plant nutrition dates to the 19th century and
the work of German chemist Justus von Liebig, among others.
John Bennet Lawes, an English entrepreneur, began to experiment on the effects of
various manures on plants growing in pots in 1837, and a year or two later the
experiments were extended to crops in the field. One immediate consequence was that
in 1842 he patented a manure formed by treating phosphates with Sulphuric acid, and
thus was the first to create the artificial manure industry. In the succeeding year he
enlisted the services of Joseph Henry Gilbert, with whom he carried on for more than
half a century on experiments in raising crops at the Rothamsted Experimental Station.
The Birkeland–Eyde process was one of the competing industrial processes in the
beginning of nitrogen based fertilizer production. It was developed by Norwegian
industrialist and scientist Kristian Birkeland along with his business partner Sam Eyde
in 1903, based on a method used by Henry Cavendish in 1784. This process was used
to fix atmospheric nitrogen (N2) into nitric acid (HNO3), one of several chemical
processes generally referred to as nitrogen fixation. The resultant nitric acid was then
used as a source of nitrate (NO3-) in the reaction
HNO3 → H+ + NO3-
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Which may take place in the presence of water or another proton acceptor. Nitrate is
an ion which plants can absorb.
A factory based on the process was built in Rjukan and Notodden in Norway, combined
with the building of large hydroelectric power facilities.
The Birkeland-Eyde process is relatively inefficient in terms of energy consumption.
Therefore, in the 1910s and 1920s, it was gradually replaced in Norway by a
combination of the Haber process and the Ostwald process. The Haber process
produces ammonia (NH3) from methane (CH4) gas and molecular nitrogen (N2). The
ammonia from the Haber process is then converted into nitric acid (HNO3) in the
Ostwald process.
Fertilizers come in various forms. The most typical form is solid fertilizer in granulated
or powdered forms. The next most common form is liquid fertilizer; some advantages
of liquid fertilizer are its immediate effect and wide coverage.
There are also slow-release fertilizers (various forms including fertilizer spikes, tabs,
etc.) which reduce the problem of "burning" the plants due to excess nitrogen. Polymer
coating of fertilizer ingredients gives tablets and spikes a 'true time-release' or 'staged
nutrient release' (SNR) of fertilizer nutrients.
More recently, organic fertilizer is on the rise as people are resorting to environmental
friendly (or 'green') products. Although organic fertilizers usually contain a lower
concentration of nutrients, this lower concentration avoids complication of nitrogen
burn harming the plants. In addition, organic fertilizers such as compost and worm
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castings break down slowly into complex organic structures (humus) which build the
soil's structure and moisture- and nutrient-retaining capabilities.
Fertilizers are broadly divided into organic fertilizers (composed of organic plant or
animal matter), or inorganic or commercial fertilizers. Plants can only absorb their
required nutrients if they are present in easily dissolved chemical compounds. Both
organic and inorganic fertilizers provide the same needed chemical compounds.
Organic fertilizers provided other macro and micro plant nutrients and are released as
the organic matter decays—this may take months or years. Organic fertilizers nearly
always have much lower concentrations of plant nutrients and have the usual problems
of economical collection, treatment, transportation and distribution.
Inorganic fertilizers nearly always are readily dissolved and unless added have few
other macro and micro plant nutrients nor added any 'bulk' to the soil. Nearly all
nitrogen that plants use is in the form of NH3 or NO3 compounds. The usable
phosphorus compounds are usually in the form of phosphoric acid (H3PO4) and the
potassium (K) is typically in the form of potassium chloride (KCl). In organic fertilizers
nitrogen, phosphorus and potassium compounds are released from the complex organic
compounds as the animal or plant matter decays. In commercial fertilizers the same
required compounds are available in easily dissolved compounds that require no
decay—they can be used almost immediately after water is applied. Inorganic
fertilizers are usually much more concentrated with up to 64% (18-46-0) of their weight
being a given plant nutrient, compared to organic fertilizers that only provide 0.4% or
less of their weight as a given plant nutrient. Nitrogen fertilizers are often made using
the Haber-Bosch process (invented 1909) which uses natural gas (CH4+) for the
hydrogen and nitrogen gas (N2) from the air at an elevated temperature and pressure in
the presence of a catalyst to form ammonia (NH3) as the end product. This ammonia
is used as a feedstock for other nitrogen fertilizers, such as anhydrous ammonium
nitrate (NH4NO3) and urea (CO (NH2)2). These concentrated products may be diluted
with water to form a concentrated liquid fertilizer (e.g. UAN). Deposits of sodium
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nitrate (NaNO3) (Chilean saltpeter) are also found the Atacama Desert in Chile and
was one of the original (1830) nitrogen rich inorganic fertilizers used. It is still mined
for fertilizer.
In the Nitro phosphate process or Odda Process (invented in 1927), phosphate rock
with up to a 20% phosphorus (P) content is dissolved with nitric acid (HNO3) to
produce a mixture of phosphoric acid (H3PO4) and calcium nitrate (Ca(NO3)2). This
can be combined with a potassium fertilizer to produce a compound fertilizer with all
three N: P: K plant nutrients in easily dissolved form. Phosphate rock can also be
processed into water-soluble phosphate (P2O5) with the addition of sulfuric acid
(H2SO4) to make the phosphoric acid in phosphate fertilizers. Phosphate can also be
reduced in an electric furnace to make high purity phosphorus; however, this is more
expensive than the acid process.
Potash can be used to make potassium (K) fertilizers. All commercial potash deposits
come originally from marine deposits and are often buried deep in the earth. Potash
ores are typically rich in potassium chloride (KCl) and sodium chloride (NaCl) and are
obtained by conventional shaft mining with the extracted ore ground into a powder. For
deep potash deposits hot water is injected into the potash which is dissolved and then
pumped to the surface where it is concentrated by solar induced evaporation. Amine
reagents are then added to either the mined or evaporated solutions. The amine coats
the KCl but not NaCl. Air bubbles cling to the amine + KCl and float it to the surface
while the NaCl and clay sink to the bottom. The surface is skimmed for the amine +
KCl which is then dried and packaged for use as a K rich fertilizer—KCl dissolves
readily in water and is available quickly for plant nutrition. Compound fertilizers often
combine N, P and K fertilizers into easily dissolved pellets. The N: P: K ratios quoted
on fertilizers give the weight percent of the fertilizer in nitrogen (N), phosphate (P2O5)
and potash (K2O equivalent)
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The use of commercial inorganic fertilizers has increased steadily in the last 50 years,
rising almost 20-fold to the current rate of 100 million tonnes of nitrogen per year.
Without commercial fertilizers it is estimated that about one-third of the food produced
now could not be produced. [17] The use of phosphate fertilizers has also increased
from 9 million tonnes per year in 1960 to 40 million tonnes per year in 2000. A maize
crop yielding 6–9 tonnes of grain per hectare requires 31–50 kg of phosphate fertilizer
to be applied, soybean requires 20–25 kg per hectare.
1.2 FERTILIZER INDUSTRY IN INDIA
India is the second biggest consumer of fertilizer in the world next only to China. The
Indian Fertilizer companies produced around 37.6 million tonnes of fertilizer in the
year 2012-13 with a 9% rise in comparison to 34.6 million tonnes of last year ( 2011-
12 ) production. However, the total availability was short of demand and was met
through imports. Of total fertiliser production, urea output increased to 23.3 million
tonnes in FY12-13 from 21.8 million tonnes in FY11-12 due to better capacity
utilization. While production of di-ammonium phosphate (DAP) may touch 4.3 million
tonne from 3.6 million tons this year, output of NPK (nitrogen, phosphate and
potassium) could rise to 10 million tonnes from 9.2 million tonnes in the current period.
The entire requirement of around five million tonnes of Potassic fertilizers would be
met through imports as India does not have commercially viable sources of potash.
With a view to make the nation self-sufficient in urea fertiliser, the Fertiliser Ministry
has moved a proposal to boost investment in the sector. The fertilizer subsidy bill for
FY 2012-13 is expected to increase by Rs 10,000 crore in respect of the budgeted
estimates. In current financial year FY 2012-13 the subsidy bill would reach to Rs
70,974 crore while it was estimated as Rs 60,974 crore in the budget. The government
planned to contain subsidy within 2% of the GDP in FY 2012-13 but due to
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international conditions like depreciating Rupee and oil prices subsidies rose to 2.6 %
of GDP. The Kelkar Committee has proposed certain initiatives to whittle down
subsidies to 2 per cent in FY 2013-14 and 1.8 % in FY 2014-15.
Agriculture the backbone of Indian Economy still holds its relative importance for more
than a billion peoples. The Government of India from time to time has taken
considerable steps for the upliftment of Agriculture Sector. Here we have analyzed the
performance of Fertilizer Industry being one of the vital parts in agricultural production
and Government's policy initiatives for the same. Fertilizer in the agricultural process
is an important area of concern. Fertilizer industry in India has succeeded in meeting
the demand of all chemical fertilizers in the recent years. The Fertilizer Industry in
India started its first manufacturing unit of Single Super Phosphate (SSP) in Ranipet
near Chennai with a capacity of 6000 MT a year.
India's green revolution in late sixties gave a positive boost to the sector. The sector
experienced a faster growth rate and presently India is the third largest fertilizer
producer in the world.
According to Given Statistics, total capacity of the industry as on 30.01.2003 has
reached a level of 121.10 lakh MT of nitrogen (inclusive of an installed capacity of
208.42 lakh MT of urea after reassessment of capacity) and 53.60 lakh MT of
phosphatic nutrient.
Presently there are 57 large fertilizers plants in the country producing urea, DAP,
Complex fertilizer, Ammonium Sulphate (AS) and Calcium Ammonium Nitrate
(CAN).
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1.3 THEOREITICAL BACKGROUND OF THE TOPIC
1.3.1 BRAND AWARENESS
Brand awareness is the extent to which a brand is recognized by potential customers,
and is correctly associated with a particular product. Expressed usually as a percentage
of the target market, brand awareness is the primary goal of advertising in the early
months or years of a product's introduction.
Brand awareness is related to the functions of brand identities in consumers’ memory
and can be reflected by how well the consumers can identify the brand under various
conditions. Brand awareness includes brand recognition and brand recall performance.
Brand recognition refers to the ability of the consumers to correctly differentiate the
brand they previously have been exposed to. This does not necessarily require that the
consumers identify the brand name. Instead, it often means that consumers can
response to a certain brand after viewing its visual packaging images. Brand recall
refers to the ability of the consumers to correctly generate and retrieve the brand in
their memory. A brand name that is well known to the great majority of households is
also called a household name.
1.3.2 Importance
Brand awareness plays a major role in a consumer’s buying decision-making process.
During this process, the category need is stimulated first. For example, you need to do
food shopping. You will only write down the food categories, like chocolate, instead
of brand names on your list. You will scan the packages of chocolate on the shelf and
recognize different brands. Such recognition might be based on the knowledge of an
acquaintance or friend having used the product in the past or constant advertisement.
In this situation, brand awareness does not require brand recall because brand
awareness may occur along with brand recognition. However, in other situations, brand
recall is required. For instance, you are in a hurry and want to grab a bite at a fast-food
restaurant. It is not possible for you to drive around and make a decision. You need to
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retrieve different fast-food brands in your memory, choose one and go there directly.
In this situation, constant advertisement is important in consumers’ memory retrieval
because the consumers are willing to go to the first brand that can be recalled.
1.3.3 Measures of Brand Awareness
Aided Awareness - This type of awareness is generated in a consumer. When asked
about a product category, if the consumer is aided with a list of company names and he
recognizes the company from the given set it is categorized as aided awareness.
Spontaneous awareness -When asked about a product category, the consumers are
asked to list brands they know without any cues.
Top of the mind Awareness - When the name of the company is automatically
recollected because the consumer very promptly associates the brand with the product
category, it is called a top of the mind awareness of the product. It’s the first brand
name listed by the consumers when asked to name brands they know without any cues.
1.4 BRAND PERCEPTION
Brand perception refers to the marketing effects or outcomes that accrue to a product
with its brand name compared with those that would accrue if the same product did not
have the brand name. And, at the root of these marketing effects is consumer’s
knowledge. Perception is more complex; it’s the “what” and the “why” of the brand.
Perception is created through experience with the brand’s product or service and it
reflects the values consumers have attached to it.
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CHAPTER-2
PROFILE OF THE ORGANIZATION
TABLE 2.1 COMPANY PROFILE
Type Cooperative
Industry Fertilizer, Agri-Products, Agricultural
Development
Founded 3 November 1967
Headquarters IFFCO Sadan C-1, District Centre,
Saket Place, New Delhi-110017, India
Area served India
Key people Balvinder Singh Nakai, Chairman
Dr. Udai Shanker Awasthi, MD&CEO
Products Fertilizers
Revenue 211.9 billion (US$3.6 billion) (2010–
11)
Net income 7.914 billion (US$130 million)
(2010–11)
Employees 8000
Website www.iffco.in
www.iffco.coop
www.iffcoindia.com
www.iffcolive.com
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2.1 IFFCO: Indian Farmer’s Success Story
During mid- sixties the Co-operative sector in India was responsible for distribution of
70 percent of fertilizers consumed in the country. This Sector had adequate
infrastructure to distribute fertilizers but had no production facilities of its own and
hence dependent on public/private Sectors for supplies. To overcome this lacuna and
to bridge the demand supply gap in the country, a new cooperative society was
conceived to specifically cater to the requirements of farmers. It was a unique venture
in which the farmers of the country through their own Co-operative Societies created
this new institution to safeguard their interests. The number of co-operative societies
associated with IFFCO have risen from 57 in 1967 to 39,824 at present.
Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November
3, 1967 as a Multi-unit Co-operative Society. On the enactment of the Multistate
Cooperative Societies act 1984 & 2002, the Society is deemed to be registered as a
Multistate Cooperative Society. The Society is primarily engaged in production and
distribution of fertilizers. The byelaws of the Society provide a broad frame work for
the activities of IFFCO as a Cooperative Society.
IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant at
Kandla both in the, state of Gujarat in 1975. Another ammonia - urea complex was set
up at Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla
was commissioned in 1988.
IFFCO has taken equity in National Commodity and Derivative Exchange (NCDEX)
and National Collateral Management Services Ltd (NCMSL). IFFCO Chattisgarh
Power Ltd (ICPL) which is under implementation is yet another foray to move into
core area of power. IFFCO is also behind several other companies with the sole
intention of benefitting farmers.
The distribution of IFFCO's fertilizer is undertaken through over 39824 cooperative
societies. The entire activities of Distribution, Sales and Promotion are co-ordinated by
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Marketing Central Office (MKCO) at New Delhi assisted by the Marketing offices in
the field. In addition, essential agro-inputs for crop production are made available to
the farmers through a chain of 158 Farmers Service Centre (FSC). IFFCO has promoted
several institutions and organizations to work for the welfare of farmers, strengthening
cooperative movement, improve Indian agriculture. Indian Farm Forestry Development
Cooperative Ltd (IFFDC), Cooperative Rural Development Trust (CORDET), IFFCO
Foundation, Kisan Sewa Trust belong to this category. An ambitious project 'ICT
Initiatives for Farmers and Cooperatives' is launched to promote e-culture in rural
India. IFFCO obsessively nurtures its relations with farmers and undertakes a large
number of agricultural extension activities for their benefit every year.
At IFFCO, the thirst for ever improving the services to farmers and member co-
operatives is insatiable, commitment to quality is insurmountable and harnessing of
mother earths' bounty to drive hunger away from India in an ecologically sustainable
manner is the prime mission. All that IFFCO cherishes in exchange is an everlasting
smile on the face of Indian Fanner who forms the moving spirit behind this mission.
IFFCO, today, is a leading player in India's fertilizer industry and is making substantial
contribution to the efforts of Indian Government to increase food grain production in
the country. Indian Farmers Fertiliser Cooperative Limited, which is also known
IFFCO, is the world’s largest fertilizer cooperative federation which is based in India
which is registered as a Multistate Cooperative Society. IFFCO has 40,000 member
cooperatives. IFFCO has been ranked 37 in top companies in India in 2011 by Fortune
India 500 list.
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2.2 MISSION OF IFFCO
IFFCO's mission is 'to enable Indian farmers to prosper through timely supply of
reliable, high quality agricultural inputs and services in an environmentally sustainable
manner and to undertake other activities to improve their welfare"
 To provide to farmers high quality fertilizers in right time and in adequate
quantities with an objective to increase crop productivity.
 To make plants energy efficient and continually review various schemes to
conserve energy.
 Commitment to health, safety, environment and forestry development to enrich
the quality of community life.
 Commitment to social responsibilities for a strong social fabric.
 To institutionalize core values and create a culture of team building,
empowerment and innovation which would help in incremental growth of
employees and enable achievement of strategic objectives.
 Foster a culture of trust, openness and mutual concern to make working a
stimulating and challenging experience for stake holders.
 Building a value driven organization with an improved and responsive customer
focus. A true commitment to transparency, accountability and integrity in
principle and practice.
 To acquire, assimilate and adopt reliable, efficient and cost effective
technologies.
 Sourcing raw materials for production of phosphatic fertilizers at economical
cost by entering into Joint Ventures outside India.
 To ensure growth in core and non-core sectors.
 A true Cooperative Society committed for fostering cooperative movement in
the country.
 Emerging as a dynamic organization, focusing on strategic strengths, seizing
opportunities for generating and building upon past success, enhancing earnings
to maximize the shareholders' value.
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OBJECTIVES
IFFCO strives to realize its mission through a wide spectrum of activities. These
activities are defined in IFFCO's Bye Laws which are listed below.
 The objective of IFFCO shall be to promote the economic interest of its
members by conducting its affairs in professional, democratic and autonomous
manner through self-help and mutual cooperation for undertaking
manufacture/production/development of chemical fertilizers, bio-fertilizers,
petrochemicals, refining industrial chemicals, and hydrocarbon, their inputs and
technologies, and allied products/bye-products and conversion, storage,
transportation and marketing; undertaking manufacture/processing/conversion
of farm and forestry products, bio-technology, pisciculture and aqua-farming,
agriculture machinery and implements and other agricultural inputs/outputs and
their conversion, storage, transportation and marketing and undertake trading,
shipping, transportation, communication and telecommunication, information
technology, power generation and distribution from conventional or non-
conventional energy sources, housing, real estate, construction, banking and
insurance and to undertake such other activities which are conducive and
incidental thereto.
 In furtherance of above objects, IFFCO may undertake one or more of the
following activities which are indicative but not limited to:
a) To set up Plant or Plants for manufacturing of chemical fertilizers and allied
products/bye-products.
b) To undertake production, processing and also manufacture of insecticides,
pesticides, seeds, agricultural machinery and implements and other
agricultural production requisites by setting up or taking on lease
manufacturing units either directly or in collaboration with or as a joint
venture with other Cooperative Institution/Public Sector Enterprise or any
other agency.
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c) To acquire, establish, construct, provide and maintain and administer factories,
townships, estates, railway sidings, build yards, wells, water reservoirs,
channels, pumping installations, purification plants, pipe lines, carriages,
storage sheds and accommodation of all descriptions for facilitating the
business of IFFCO.
d) To manufacture, store, maintain, sell, buy, repair, alter, exchange, let on hire,
export, import and deal in all kinds of articles and things which may be required
for the purpose of any of the business of IFFCO or are commonly supplied or
dealt in by persons engaged in any such business or which may seem capable
of being profitably dealt in connection with any of the business of IFFCO.
e) To act as warehousing agency under the Warehousing Act and own and
construct its own Godowns or hire Godowns for the storage of fertiliser and
other goods.
f) To set up storage units for storing fertilizers and other goods by itself or in
collaboration with any other Cooperative Institution or any other agency.
g) To maintain transport units of its own or in collaboration with any other
organization in India or abroad for movement of goods by land and sea, etc.
h) To acquire, take on lease or hire land, buildings, fixtures and vehicles and to
sell, give on lease or hire them for the business of IFFCO.
i) To promote and organize other Cooperative Societies which are in the field of
manufacturing, production and marketing of fertilizers and other agricultural
production requisites.
j) To enter into the contracts and collaboration for purchases, production,
manufacture and marketing of raw materials, auxiliary products, packing
materials, finished products, bye-products and other waste products and also
enter into joint marketing and product exchange agreements with other
Cooperative Institutions, Public Sector Undertakings or any other agency.
k) To enter into collaboration with Cooperatives or others in India or in foreign
countries for machinery and equipment, and for technical know-how,
consultancy, designing, engineering, construction, erection, operation and
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maintenance of fertiliser, chemical and other Plants and marketing of the
produce of the same.
l) To provide technical consultancy and other services to member societies and
other agencies.
m) To set up agricultural farms by purchasing, acquiring and taking on lease of
land from Government Institution and private agency for research and
development of agriculture.
n) To set up institutes for providing training to the farmers and others in the
modern and improved agricultural technology and other areas of Human
Resource Development.
o) To provide and arrange for the training of employees of the Cooperative
Societies to promote and develop the sales of fertiliser and other agricultural
production requisites in which IFFCO is interested.
p) To take up such other activities which are incidental and conducive to
agriculture and rural development.
q) To promote subsidiary institutions for the purpose of furthering the objects of
IFFCO.
2.3 VISION
To augment the incremental incomes of farmers by helping them to increase their crop
productivity through balanced use of energy efficient fertilizers, maintain the
environmental health and to make cooperative societies economically &
democratically strong for professionalized services to the farming community to ensure
an empowered rural India.
2.4 APPROACH
To achieve our mission, IFFCO as a cooperative society, undertakes several activities
covering a broad spectrum of areas to promote welfare of member cooperatives and
farmers. The activities envisaged to be covered are exhaustively defined in IFFCO’s
Bye-laws.
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2.5 COMMITMENT
Our thirst for ever improving the services to farmers and member co-operatives is
insatiable, commitment to quality is insurmountable and harnessing of mother earths'
bounty to drive hunger away from India in an ecologically sustainable manner is the
prime mission.
All that IFFCO cherishes in exchange is an everlasting smile on the face of Indian
Farmer who forms the moving spirit behind this mission.
2.6 VISION 2015
In pursuit of its growth and development, IFFCO had embarked upon and successfully
implemented its Corporate Plans namely ‘Mission 2005’ and ‘Vision 2010’which
resulted into becoming one of the largest producer and marketer of Chemical Fertilizers
by expansion of IFFCO’s existing Units, setting up Joint Venture Companies Overseas
and Diversification into new Sectors.
IFFCO has now visualized a comprehensive plan entitled ‘Vision-2015’ having the
following objectives:
Production of fertilizers through expansion of existing units.
Setting up of additional fertilizer production facilities in India and Abroad through joint
ventures.
Diversification into other profitable sectors.
Strengthening raw material sourcing through strategic joint ventures in India and
abroad.
Formulation of strategic alliances through IFFCO consortium.
To stand as a Global leader in fertilizer production to cater to food security needs of
the nation.
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Maximizing the synergies of the core business through downstream value additions and
forward/backward integrations.
Enhancing presence in international markets through strategic joint ventures and
synergetic acquisitions.
Diversification into other profitable business to maximize returns to our stakeholders.
Promoting integrated Nutrient Management to improve efficiency of fertilizer use and
promoting location specific research on efficient fertilizer practices.
To help the cooperative societies become economically strong, professionally managed
and to equip the farming community with advanced agricultural practices for improved
productivity, to ensure an empowered rural India. Achieve fertilizer
production/marketing target of 15 million tons per annum with and annual turnover of
Rs. 30,000 Crore.
2.7 DIVERSIFICATION AND JOINT VENTURES
IFFCO has made strategic investments in several joint ventures. Indian Potash Limited
in India, Industries Chimiques du Senegal (ICS) in Senegal and Oman India Fertiliser
Company (OMIFCO) in Oman are important fertiliser joint ventures. Indo Egyptian
Fertiliser Company (IEFCO) in Egypt, Jordan India Fertiliser Company in Jordan are
under implementation. As part of strategic diversification, IFFCO has entered into
several key sectors. IFFCO-Tokio General Insurance Ltd (ITGI) is a foray into general
insurance sector. Through ITGI, IFFCO has formulated new services of benefit to
farmers.
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‘Sankat Haran Bima Yojana’ provides free insurance
cover to farmers along with each bag of IFFCO fertiliser purchased. To take the benefits
of emerging concepts most of the agricultural commodity trading, IFFCO has
purchased equity in National Commodity and mostly like the Derivatives Exchange
(NCDEX) and National Collateral Management Services Limited (NCMSL). IFFCO
Chattisgarh Power Limited (ICPL) which is the only implementation is yet another
foray to move into core area of power. IFFCO Kisan Sanchar Ltd (IKSL) is a Telecom
initiative for Rural India. IFFCO is developing the multi-product KISAN Special
Economic Zone (IKSEZ) at Nellore in Andhra Pradesh - first of its kind with farmer's
cooperatives as stakeholders. IFFCO is also behind several other companies with the
sole intention of benefiting farmers. The distribution of IFFCO’s fertiliser is undertaken
through over 39,800 co-operative societies.
The entire activities of Distribution, Sales and Promotion are co-ordinated by
Marketing Central Office (MKCO) at New Delhi assisted by the Marketing offices in
the field. In addition, essential agro-inputs for crop production are made available to
the farmers through a chain of 158 Farmers Service Centre (FSC). IFFCO has promoted
several institutions and organizations even to work for the welfare of farmers,
strengthening cooperative movement, improve Indian agriculture. Indian Farm
Forestry Development Cooperative Ltd (IFFDC), the Cooperative Rural Development
Trust (CORDET), IFFCO Foundation, Kisan Sewa Trust belong to this category. An
ambitious project ‘ICT Initiatives for Farmers and Cooperatives’ is launched to
promote e-culture in rural India. IFFCO obsessively nurtures its relations with farmers
and undertakes a large number of agricultural extension activities for their benefit every
year. In February 2010, it was announced that IFFCO had entered into a joint venture
partnership with GrowMax Agri Corp, a subsidiary of Americas Petrogas Inc.
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 20
2.8 IFFCO MANAGEMENT TEAM
TABLE 2.8 Management Team of IFFCO
Mr. Balvinder Singh Nakai| Chairman
Mr. N. P. Patel | Vice-Chairman
Dr. U.S. Awasthi | Managing Director &
Chief Executive Officer
Mr. Rakesh Kapur | Jt. Managing Director
& Chief Financial Officer
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 21
Mr. K. L. Singh | Director (Technical)
Dr. G. N. Saxsena | Director (Coop.
Development)
Mr. R. P. Singh | Director (HR & Legal)
Mr. Arabinda Roy | Marketing Director
Mr. Manish Gupta | Director (Strategy &
JV)
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 22
Mr. Aditya Yadav | Director IFFCO, UP
Cooperative Federation Ltd.
Mr. Prem Chandra Munshi |Director
IFFCO, Adarsh Krishak Sewa Swalambi
Sah. Samiti
Mr. Simachal Padhy | Director IFFCO,
ODISHA, President, Sree Kapilaswar
MPCS Ltd.
Mr. Kanchi Rama Rao | Director IFFCO,
Andhra Pradesh State Coop Mktg Fed.
Ltd.
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 23
2.9 IFFCO's Fertilizer Production Units
 IFFCO, Kalol, Kasturi Nagar, Gandhi Nagar, (Gujarat), INDIA
Fig 2.9.1 IFFCO, Kalol, Gujarat
Production Capacities
Ammonia- Urea Complex Commissioned in 1975
Ammonia - 0.36 million TPA
Urea - 0.55 million TPA
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 24
 IFFCO, Kandla Unit, Post Box No.12, Gandhidham,Kandla
(Kuchchh),Gujarat, INDIA
Fig 2.9.2 IFFCO, Kandla, Gujarat
Production Capacities
NPK/DAP Complex Commissioned in 1975
NPK/DAP: 2.42 million MTPA
In P205 terms: 0.910 million MTPA
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 25
 IFFCO, Phulpur, P.O. - Ghiyanagar, Allahabad, Uttar Pradesh, INDIA
Fig 2.9.3 IFFCO, Phulpur, U.P
Production capacities
Ammonia- Urea Complex Commissioned In 1981
Ammonia - 0.824 million TPA
Urea - 1.416 million TPA
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 26
 IFFCO, Aonla, P.O - IFFCO Township, Bareilly, Uttar Pradesh, INDIA
Fig 2.9.4 IFFCO, Aonla, U.P
Production Capacities
Ammonia- Urea Complex Commissioned in 1988
Ammonia - 1.148 Million MTPA
Urea - 2.000 Million MTPA
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KOSHYS INSTITUTE OF MANAGEMENT STUDIES 27
 IFFCO - Paradeep, Village-Musadia, PO: Paradeep, Dist. Jagatsinghpur,
Odisha, INDIA
Fig 2.9.5 IFFCO, Jagatsinghpur, Odisha
Production Capacities
DAP/NPK : 2 Million TPA
Sulphuric Acid : 7000 TPD
Phosphoric Acid : 2650 TPD
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2.10 PRODUCT PROFILE
2.10.1 IFFCO’s PRODUCTS
2.10.1.1 UREA
IFFCO’s Urea is not merely a source of 46% of nutrient nitrogen for crops, but it
is an integral part of millions of farmers in India. A bag of IFFCO’s urea is a constant
source of confidence and is a trusted companion for Indian farmer.
When farmers buy IFFCO's urea, they know that what they get is not just a product but
a complete package of services, ably supported by a dedicated team of qualified
personnel. More importantly, they are aware that it is their own urea, produced and
supplied by a cooperative society owned by themselves.
INDIAN FARMERS COOPERATIVE LIMITED
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About Urea
Urea is the most important nitrogenous fertiliser in the country because of its high N
content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to
replace a part of protein requirements. It has also numerous industrial uses notably for
production of plastics.
Table 2.10.1.1 Urea Specialization
Specification of urea as per
Fertiliser
Control Order
1. Moisture % by weight, maximum 1.0
2. Total N % by weight (on dry basis)
minimum
46.0
3. Biuret % by weight, maximum 1.5
4. Particle size 90% of the material shall pass through 2.8
mm IS sieve and not less than 80% by
weight shall be retained on 1 mm IS sieve.
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If urea is applied to bare soil surface significant quantities of ammonia may be lost by
volatilization because of its rapid hydrolysis to ammonium carbonate. The hydrolysis
of urea can be altered by the use of several compound called urease inhibitors. These
inhibitors inactivate the enzyme and thereby prevent the rapid hydrolysis of urea when
it is added to soil. The rapid hydrolysis of urea in soils is also responsible for ammonia
injury to seedlings if large quantities of this material placed with or too close to the
seed. Proper placement of fertiliser urea with respect to seed can eliminate this
difficulty.
2.10.1.2 NPK/DAP
There are two categories of NPK. They come in different ratio of composition or
grades:
 10:26:26 (Contains three plant nutrients - 10% Nitrogen, 26% Phosphorous and
26% Potash).
 12:32:16 (Contains three plant nutrients - 12% Nitrogen, 32% Phosphate, and
16% Potash)
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As far as Indian farmer is concerned, IFFCO's NPK/DAP is not just a source of crucial
nutrients N, P, K for the crops, but is an integral part of his/her quest for nurturing
mother earth. The bountiful crop that results from this care is an enough reason for the
graceful bags of IFFCO NPK/DAP bags to be an integral part of the farmers' family.
The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating the
content of N, P, K proportion, are tailor made to supply the exact composition required
for replenishment of the soil. The Indian farmer's confidence and trust stems from the
fact that IFFCO's NPK/DAP are merely a part of a complete package of services, ably
supported by a dedicated team of qualified personnel. More importantly, they are
aware, IFFCO is a cooperative society owned by farmers cooperatives.
INDIAN FARMERS COOPERATIVE LIMITED
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About NPK/DAP
Diammonium Phosphate
It is the most popular phosphatic fertiliser because of its high analysis and good
physical properties. The composition of pure salt of DAP is N-21.19% and P205 -
53.76%. Fertiliser grade DAP is 18:46:0.
NPK Complex Grades
NPK complex fertilizers produced at Kandla are DAP based grades. At present two
grades Grade I - 10:26:26 and Grade II - 12:32:16 are produced.
Granular NPK complexes are free flowing and do not pose any problem during
handling and storage. However, exposure of material for long period to very high
humidity may cause caking. Therefore, NPK complexes are bagged in quality tested
HDPE bags to prevent ingress of moisture.
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Table 2.10.1.2 DAP/NPK Specifications
Specifications of DAP/NPK complex as
per Fertiliser Control Order
DAP NPK-
10:26:26
NPK-
12:32:16
1. Moisture % by weight, maximum 1.5 1.0 1.0
2. Total N % by weight, minimum 18.0 10.0 12.0
3. Ammoniacal N % by weight, minimum 15.5 7.0 9.0
4. N in the form of urea, % by weight,
maximum
2.5 3.0 3.0
5. Neutral ammonium citrate soluble
phosphates (as P2O5) % by weight,
minimum
46.0 26.0 32.0
6. Water soluble phosphates (as P2O5) %
by weight, minimum
41.0 22.1 27.2
7. Water soluble potash (as K2O) % by
weight, minimum
-- 26.0 16.0
8. Particle size 90% of the material will be between
1 mm and 4 mm IS sieve and not
more than 5% will be below 1 mm
size.
Table 2.10.1.2.1 Typical Composition of DAP/NPK
Typical composition of DAP/NPK
complex grades (by weight)
DAP NPK-
10:26:26
NPK-
12:32:16
1. Moisture 0.90 0.88 0.85
2. Diammonium phosphate 87.53 50.04 62.68
3. Muriate of Potash -- 43.98 26.88
4. Urea 3.09 1.50 1.63
5. Filler (silica sand) 8.48 3.60 7.96
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Secondary/micro nutrients DAP NPK-
10:26:26
NPK-
12:32:16
1. Sulphur as S 0.48 0.88 0.66
2. Iron as Fe 0.31 0.40 0.25
3. Aluminium as AI 0.32 0.52 0.18
4. Calcium as Ca 0.12 0.11 0.09
5. Magnesium as Mg 0.26 0.34 0.31
6. Zinc as Zn (ppm) 103 98 88
7. Copper as Cu 55 32 27
Atomic weight
C=12, H=1, O=16, N=14, P=31, K=39, Ca=40, S=32, C1=35.
Conversion factors
P to P205 = 2.29; P205 to P = 0.44
K to K20 = 1.2; K20 to K= 0.83
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 35
2.10.1.3 NP
Table 2.10.1.3 Specifications of NP
Ammonium Phosphate Sulphate (20-20-0-13)
1. Moisture % by weight, maximum 1.0
2. Total Nitrogen, per cent by weight,
minimum
20.0
3. Ammoniacal Nitrogen, per cent by
weight, minimum
18.0
4. Nitrogen in the form of urea, per cent by
weight, maximum
2.0
5. Neutral Ammonium Citrate soluble
Phosphates(as P205), per cent by weight,
minimum
20.0
6. Water soluble phosphates (as P2O5), per
cent by weight, minimum
17.0
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7. Particle size Not less than 90 per cent of the
material
shall pass through 4 mm IS sieve and
shall be retained on 1 mm IS sieve.
Not more than 5 per cent shall be
below 1 mm IS sieve.
8. Sulphur (as S), per cent by weight
minimum
13.0
2.10.1.4 BIO-FERTILIZERS
A biofertiliser unit was established at Cooperative Rural Development Trust, Phulpur
(Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with an annual
capacity of 75 MT and 165 MT respectively of different cultures such as Rhizobium,
Azotobacter, PSM, Azospirillium and Acetobacter.
2.10.1.4.1 Phosphate Solubilising Micro Organism
Several soil bacteria and fungi possess the ability to bring
insoluble phosphates into soluble forms by secreting organic
acids. They can be applied to and recommended for all crops.
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2.10.1.4.2 Rhizobium
It is the most important nitrogen fixing organism. It live
symbiotically in the root nodules of leguminous plants and
supply nitrogen to the plant through nitrogen fixation.
Besides, supplying nitrogen to the crop, nitrogen fixed by
legume - Rhizobia association would also leave residual
nitrogen for the succeeding crops. The beneficiary crops are
Groundnut, Soybean, Red-gram, Green-gram, Black-gram,
Lentil, Cow pea, Bengal-gram and Fodder legumes.
2.10.1.4.3 Azotobacter
It is non-symbiotic nitrogen fixing bacteria recommended
for non-leguminous crops like Paddy, Wheat, Millets,
Cotton, Tomato, Cabbage, Mustard, Safflower and
Sunflower. The Azotobacter performs well if the soil
organic matter content is high.
2.10.1.4.4 Acetobacter
It is a symbiotic bacteria capable of fixing atmospheric
nitrogen by living within the sugar plant. They are found in
all parts of plant body. It is suitable for sugarcane
cultivation.
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2.10.1.4.5 Azospirillium
It is an associative microaerophilic nitrogen fixer is
commonly found in association with the roots of cereals and
forage grasses. The beneficiary crop include Sugarcane,
Vegetables, and Maize, Pearl millet, Rice, Wheat, Fodders
and Oil seeds.
2.10.1.5 WATER SOLUBLE FERTILISER
2.10.1.5.1 Urea Phosphate 17:44:0
Moisture per cent by weight, maximum
0.5
Total Nitrogen, percent by weight,
minimum 17.0
Water soluble phosphate (as P2O5), per
cent by weight minimum 44.0
Matter insoluble in water, per cent by
weight, maximum 0.5
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2.10.1.5.2 NPK 19:19:19
Total Nitrogen, % by wt. minimum 19.0
Nitrate Nitrogen, % by wt. maximum 4.0
Ammoniacal Nitrogen, % by wt.
minimum 4.5
Urea Nitrogen, % by wt. maximum 10.5
Water soluble Phosphate (as P2O5), % by
wt. minimum 19.0
Water soluble Potash (as K2O), % by wt.
minimum 19.0
Sodium as NaCl, per cent by weight on
dry basis, maximum 0.5
Moisture, per cent by weight, maximum
0.5
2.10.1.5.3 SULPHUR BENTONITE
Sulphur 90 % (Granular) - As per FCO
specifications:
Moisture per cent by weight, maximum
0.5
Total Sulphur (as S) per cent by weight,
minimum 90.0
Particle size - Not less than 90 per cent of
the material shall pass through 4.0 mm IS
sieve and be retained on 1 mm IS sieve and
not more than 5 % shall be below 1 mm IS
sieve
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2.11 COMPETITORS
IFFCO’S COMPETITORS IN THE STATE AND THEIR
PRODUCTS:
PARADEEP PHOSPHATE LTD: (PPL)
Paradeep Phosphates Limited (PPL) is a primer fertilizer industry in the state of Odisha.
The company, which is a part of the KK. Birla Group and the OCP Group of Morocco,
is a second largest producer of DAP, with its corporate office at Bhubaneswar and its
Plant at the Port town of Paradeep on the shores of the Bay of Bengal, PPL has been in
the fertilizer business for the last 19 years.
PPL manufactures and markets various grades of fertilizers. These fertilizers are
marketed under the brand name “NAVRATNA”.
Products Manufactured by PPL:
Di-Ammonium Phosphate (DAP- 18:46:01)
• Contains 18% Nitrogen and 46% Phosphate.
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NPK-10:26:26
• Contains three plant nutrients
(10% Nitrogen, 26% Phosphate and 26% Potash).
NPK- 12:32:16
• Contains three plant nutrients
(12% Nitrogen, 32% Phosphate and 16% Potash)
NPK - 20:20:00:13 (Ammonium Phosphate Sulphate)
• Contains 20% Nitrogen, 20% Phosphate and 13% Sulphur
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NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED
The flagship company of the Nagarjuna Group, Nagarjuna Fertilizers and Chemicals
Limited is a leading manufacturer and supplier of plant nutrients in India. Commencing
operations in 1985, today its asset base is around Rs. 21 Billion. It has the distinction
of being the single largest private sector investment in Southern India. An ISO
9001:2000 certified company; its operational profits are one of the highest in the
industry.
INDIA POTASH LIMITED: (IPL)
IPL has no manufacturing unit in and outside the country. The organization imports the
fertilizer and markets the same. The main product marketed in the country by IPL is
Muriate of Potash (Potassic fertilizer).
COROMANDEL INTERNATIONAL LIMITED: (CIL)
CIL has a manufacturing unit at Vizag (AP) and produce different grades of Phosphatic
fertilizer. The organization also import fertilizers and market the same along with its
indigenous products in the country.
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2.12 MARKET SHARE
Cooperative major Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has increased
its stake in National Commodity & Derivatives Exchange Ltd (NCDEX) by buying a
1.12 per cent stake from Renuka Sugars for about Rs. 10 crore.
IFFCO’s stake in commodity exchange NCDEX has now reached 10 per cent.
Last week, leading sugar firm Shree Renuka Sugars Ltd sold a 7.5 per cent stake in
NCDEX to investors, including the National Stock Exchange NSE) and Indian Farmers
Fertiliser Cooperative Ltd (IFFCO), for Rs. 66.54 crore.
“We have bought 1.12 per cent stake in NCDEX at Rs. 175 per share,” a senior IFFCO
official said.
Of the stake sold by the sugar major, 5 per cent was acquired by the NSE, an original
promoter of NCDEX.
Renuka Sugars sold a 1.12 per cent stake to IFFCO.
2.13 MILESTONES/AWARDS ACHIEVED
 Dr. U S Awasthi Conferred with "Life Time Achievement Excellence Award"
in Fertiliser Sector
 IFFCO grabbed another position in IT & Systems, Placed in Top 10 CIOs of
India
 IFFCO wins FAI Award for ICT in Agricutlure
 IFFCO bags the best stall award at Pusa Krishi Vigyan Mela
 FAI Awards to IFFCO
 IFFCO won the first prize for its publication ‘Golden Harvest’ from Public
Relations Society of India.
 Skoch Digital Inclusion Award 2012 bagged by IFFCO(18-09-2012)
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 IT in IFFCO acknowledged; Mr. S C Mittal, Sr ED(MS&IT) & Group CTO
awarded in CIO100-(07-09-2012)
 IFFCO Awarded for IT Security: Placed in Top 100 CISO Award by
‘InfoSecurity’ Magazine and iViZ Security-(15-06-2012)
 IFFCO added another IT accolade in its belt: Won 2012 Computer World
Honors Laureate Award-(04-06-2012)
 IFFCO Shines at FAI Annual Awards -2011
 “IFFCO News” bagged a prize in “Best Cooperative Journal Award
Competition - 2011” organized by NCUI.(14-11-2011)
 IFFCO Wins the 6th Annual CIO100 Awards 2011 & Hall Of Fame Award (13-
10-2011)
 IFFDC wins The Times of India Social Impact Award (20-09-2011)
 SKOCH Digital Inclusion Award-2011(01-09-2011)
 Aonla wins CII Environmental Best Practices Award-2011(28-01-2011)
 Safety Innovation Award-2010 (28-12-2010)
 IFFCO Aonla Unit has been awarded the 'EDGE' winner prize (30-09-2010)
 Genentech Gold Award for Training Excellence (17-09-2010)
 ICWAI Award for Excellence in Cost Management - 2009 for IFFCO (16-08-
2010)
 IFFCO Shines at Public Relation Society of India, Grabbed 2 prestigious
awards
 IFFCO Aonla & Paradeep Unit have won the prestigious FAI awards on (03-
12-2009)
 IFFCO Aonla Wins "Gold Award“- 10th Annual Genentech Environment
Excellence Award 2009
 IFFCO bagged First ever dotCoop Global Award for Cooperative Excellence
 IBM Awards First Prize to IFFCO for Innovation
 IFFCO Phulpur Unit-I bagged "First Prize" by FAI.
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 CIO 100 & IT Awards
 Microsoft Felicitates IFFCO
 National Energy Conservation 2008 - 1st Award Conferred on Phulpur Unit
 Gujarat State Safety Award: 2007 for Kalol Unit
 IFFCO bags three FAI Awards
 IFFCO bags Energy conservation award
 IFFCO Wins PRSI Award
 Phulpur Unit Wins National Energy Conservation Award-2006
 Aonla Unit wins National Energy Conservation Award-2006
 IFFCO's Corporate Film Wins NCUI's Award.
 IFFCO Kalol Wins "National Energy Conservation Award: 2006"
 Kandla Unit wins FAI Prize
 IFFCO Aonla Wins National Safety Award
 Kandla Unit Wins - Golden Peacock Environment Management Award
 Phulpur Unit bags National Energy Award from Honourable President of India
 Best Managed Work Force Award for IFFCO
 IFFCO Aonla Unit Wins National Safety Council of India Safety Award-2004
2.14 CORPORATE SOCIAL RESPONSIBILITY
IFFCO has been pursuing its Corporate Social Responsibilities via the business of
fertilizers through the large network of farmers’ Cooperative Societies. It is a unique
Cooperative Society where shareholders are the sole consumers of its entire production.
So the benefit of marketing are passed on to them in different forms.
Some of the examples of Corporate Social Responsibility activity being undertaken by
IFFCO are as under:
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 REHABILITATION OF EARTHQUAKE VICTIMS
Consequent upon the massive earthquake in Gujarat in January, 2001, IFFCO created?
Kisan Sewa Fund (KSF)? to undertake Rehabilitation of the victims & Reconstruction
of the damaged villages and later on to undertake relief activities in the event of natural
calamities like earthquakes, droughts, cyclones, fires, floods etc. with an initial corpus
fund of Rs. 100 million which swell to Rs 218 million through contribution from
likeminded organizations.
In partnership with the Government of Gujarat, KSF has undertaken work in the
affected villages by rebuilding totally destroyed houses/huts and repair of partially
damaged houses. In addition, construction of Public Infrastructure Facilities such as
Primary Schools, Community Centers, Water Tanks, Water Supply and Drainage lines,
Storm Water Drains and Roads have also been taken up. Till date seven (7) villages
namely Modsar, Padana, Amarsar, Satapar, Kukma, Nanichirai and Varshamedi? in
Kutch District have been adopted and an amount of Rs. 190 million have been
committed out of which Rs. 130 million has been spent so far.
The status of projects undertaken by KSF for Rehabilitation of earthquake affected
villages are as under:
1) Modsar : The rehabilitation of Modsar village which includes construction of
173 houses and various infrastructure facilities such as Primary School,
Anganwadi, Samajwadi, Panchayat Ghar, Water Supply & Drainage, WBM
Road, Water trough, Snan Ghat, Bus Stand etc. at a total cost of Rs. 37.50
million have been completed and are allotted. This reconstructed village has
been dedicated to the villagers on 2nd March, 2002.
2) Amarsar : The rehabilitation of Amarsar village which includes construction of
32 houses and infrastructure facilities such as Anganwadi, Samajwadi,
Panchayat Ghar, Water Tank, Gaushala at a total cost of Rs. 10.46 million has
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been completed. This reconstructed village has been dedicated to the villagers
on 11th June, 2002.
3) Padana : The rehabilitation of Padana village which includes construction of
infrastructure facilities such as Primary School, Anganwadi, Samajwadi,
Panchayat Ghar, Water Supply & Drainage, WBM Road has been at a total cost
of Rs. 5.8 million completed and owner driven repair/ reconstruction of 244
houses out of 330 houses at an estimated cost of Rs. 17.1 million has been
completed. This reconstructed village has been dedicated to the villagers on
11th June, 2002.
4) Satapar : The rehabilitation of Satapar village which includes construction of
231 houses and various infrastructure facilities such as School, Anganwadi,
Samajwadis, Panchayat Ghar, Overhead & Underground Water Tank & WBM
Road has been completed. Housing assistance is also being provided to 122
beneficiaries for reconstruction of their houses by themselves. The total cost of
Rehabilitation of this village is estimated at Rs. 52.86 million.
This reconstructed village has been dedicated to the villagers on 6th May, 2002
by Honourable Union Minister for Chemicals and Fertilizers, Shri S.S. Dhindsa.
5) Kukma: The rehabilitation of Kukma village which includes construction of
infrastructure facilities such as Samajwadi, Aanganwadi, Community Hall,
Girls Hostel, School, Gaushala, Maternity Hall, Bus Stand etc. at an estimated
cost of Rs. 26.2 million is in progress.
6) Nanichrai : The rehabilitation of Nanichrai village which includes construction
of 216 houses and various infrastructure facilities such as RCC Water Tank,
Water supply and Drinage system, Storm Water Drainage system and WBM
Road at an estimated cost of Rs. 35.82 million is in progress.
7) Vershamedi: The rehabilitation of Vershamedi village which includes
construction of 402 houses and various infrastructure facilities such as School,
Anganwadi, Samajwadis, Panchayat Ghar, Gaushala and Bus Stand at an
estimated cost of Rs. 38.39 million is in progress. Other facilities such as
Construction of Panchayat Ghars in 24 villages at an estimated cost of Rs. 5.64
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 48
million, Repair/Reconstruction of Check Dams in Joginar, Pantiya,
Lakthirgarh, Ratnal and Hirapar villages at Rs. 2.82 million, construction of
Primary School at village Khavda and construction of Community Hall at
Pantia village is in progress.To strengthen cooperative movement financial
assistance of Rs. 19.20 million is also being provided to 66 Cooperative
Societies to reconstruct their office-cum-godown which was damaged during
earthquake.The quantum of progress achieved by KSF is despite constraints
such as large amount of Debris removal, heavy rains during the monsoon,
various formalities required under the Village Partnership Programme framed
by the Gujarat State Disaster Management Authority (GSDMA), persuasion
required for the villagers for agreeing to relocation, remote location of the
villages etc.
 PROMOTION OF FARM FORESTRY & RECLAMATION OF WASTE
LAND
IFFCO promoted Indian Farm Forestry Cooperative Ltd. (IFFDC) in 1984 to promote
farm forestry, reclamation of waste land and to establish sustainable profit oriented
village cooperatives. Phase-I project was launched in 1986 at a total cost of Rs. 70
million which was totally funded by IFFCO. Under this scheme, 4609 hectare waste
land was transformed into green forest. Phase-II was launched in 1995 in partnership
with Indian-Canada Environment Facilities at Rs. 350 million funding. Under this
scheme, plantation of 20,379 hectare land was carried out. Phase-III was launched in
1999 at an estimated cost of Rs. 470 million to implement Western India Rain Fed
Farming Project which was funded by Dep’t. Of International Development (UK
Govt.), with emphasis to enhance the livelihood of 1, 50,000 rural community in rain
fed areas of Rajasthan & Madhya Pradesh. Under this scheme 75 villages were adopted
for appropriate farming system and complementary income generating ways such as
farm forestry, livestock, water resource development etc.
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 FARMERS TRAINING ACTIVITIES
IFFCO formed Cooperative Rural Development Trust (CORDET) which impart
training to farmers in addition to various services such as hybrid seeds, soil testing, bio-
fertilizers, plant saplings etc. IFFCO contributes around Rs.10 million annually to
CORDET. Under this scheme during 2001-02, 7624 farmers were imparted training,
124 MT of seed produced/distributed, 59,670 nos. of soil sample tested, 32,569 fruits
& vegetable saplings were distributed and 145 MT by bio-fertilizers produced and
distributed.
 INTEGRATED RURAL DEVELOPMENT PROGRAMS
Under this scheme all the four factories of IFFCO undertake construction of
infrastructure such as roads, schools, and drinking water facilities etc. in adopted
villages which fall within the radius of 15 km of the factory at an annual expenditure
of Rs. 1.5 million each.
 FARMERS SERVICE CENTERS
IFFCO has established 167 Farmers Service Centers, where farmer can get fertilisers,
pesticides, seed, micro nutrient etc., at one place alongwith technical know-how for its
application. With the help of soil testing vans the soil of different locations are analysed
and farmers are advised to use proper fertilisers based on the test result.
 FREE INSURANCE TO CUSTOMER (FARMERS)
Free insurance cover for accident upto Rs. 100,000/- per farmer is provided against
purchase of fertiliser @ Rs. 4000 for every fertiliser bag of 50 kg purchased.
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 AGRICULTURE INFORMATION SYSTEM
IFFCO is developing Geographical Information System (GIS) in collaboration with
Indian Space Research Organisation (ISRO) to provide farm related information such
as weather forecast, soil characteristics, appropriate cropping pattern through
Agriculture Portal and IT Kiosks Network of the Cooperative Societies through ISRO-
Satellite alongwith distribution of IFFCO fertiliser.
 CONCERN FOR ENVIRONMENT & ECOLOGY
IFFCO?s all the four operating Plants are certified for ISO 14001 with main emphasis
on recycling of waste water after treatment and tree plantation for Green Belt
development.
 CONCERN FOR EMPLOYEES
IFFCO is one of the best paymasters in India and takes care of its employee including
medical reimbursement for self and dependent, Housing, Transportation, Schools, Club
etc. in addition to various social and insurance benefits, in order to provide conducive
working atmosphere
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2.15 SWOT ANALYSIS
IFFCO as a service oriented organization has gain a lot of popularity, trust, production,
sales and large amount of market share also still it continuously trying to be more potent
and have more popularity and to do that it must know what are the Strength, Weakness,
Opportunities and Threats.
STRENGH OF IFFCO
 An old reputed brand
 Associated with Cooperatives.
 Some products have huge demand.
 Vast coverage area.
 Highest share in the market.
 The chance of exploiting the rural farmers is only available through Govt.
Agencies or through Co-operatives only.
WEAKNESS OF IFFCO
 As it is a Govt, organization so the frequency or randomness of prompt action
is slightly low as compared to the private competitors.
 The promotional activities are very low in some areas.
 Sometimes the timely availability not occurs.
 The color of the package and the aesthetic appeal is not attractive than other
private market competitors like NFCL and PPL.
 The hook problem.
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OPPORTUNITIES TO IFFCO
 For fertilizer, the demand is always as it comes under the essential commodities.
So IFFCO has a great opportunity to maximize its sales volume.
THREATS TO IFFCO
 The main threat to IFFCO is its competitor PPL (Navaratna) which has
maximum market share in Jagatsinghpur district and attract the people through
its promotions and sales force.
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2.16 IFFCO’s DISTRIBUTION CHANNEL
The marketing of IFFCO products - NPK, NP, DAP, Urea - is channelized through
39,456 member cooperative societies, marketing federation and 158 farmer service
centers spread over 30 states/union territories across the country.
2.16.1 Marketing Channels
Distribution of fertilizer mainly through the cooperative system.
State level apex cooperative marketing federation acts as wholesaler.
Direct supplies to Societies in some states.
IFFCO-NCDC Cooperative Societies.
Small quantities to Agro Industries Cooperation etc.
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2.16.2 Distribution and Warehousing
Distribution of Urea and interstate movement is under Govt, controlled and is regulated
under the Essential Commodity Act (ECA) 1956. Under ECA, supply plan for Urea is
formulate by Govt, in consultation with the state department of Agriculture and
fertilizer Industry. IFFCO Urea is moved from factory to field warehouse by the mode
of transport such as ROAD and RAIL. Movement through Rail is resorted to on a need
basis to distant locations at the shortest time. Consumption of Urea is seasonal thereby
rendering transportation, storage and distribution is very important.
Transportation
By Rail — 88%
By Road — 12%.
Warehousing
o Federation and cooperative Godowns
o Central Warehousing Corporation (CWC)
o State Warehousing Corporation (SWC).
o PACS Godown.
o OAIC Ltd Godowns.
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2.16.3 Distribution Channel Process:
2.16.4 CHANNEL
The organization of the ways in which companies reach and satisfy their customers.
Channel involves more than just distribution and has been described as management of
how and where a product is used and how the customer and the product interact.
Channel is a way of distributing the fertilizer from one place to another i.e. from
production point to different ware houses which is then distributed to the
consumers/farmers.
2.16.4.1 CHANNEL MANAGEMENT
Channel management covers processes for identifying key customers, communicating
with them, add continuing to create the value after first contact.
Channel management, yet another sales and marketing system that is thrown around
like everyone knows what it means. But few companies really understand channel
management in a way that really helps them.
Warehouse
IFFCO
Production
Unit
State MKTG
Office
Area Office
SocietiesFarmer
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Channel management, as a process by which a company creates formalized programs
for selling and serving customers within a specific channel and can really impact your
business and in a positive way. The channel management program that includes:
Goals: Define the specific goals as a whole as individual accounts and remember to
consider your goals for both acquisition and retention.
Policies: Construct well defined policies for administering the accounts within this
channel. Be sure to keep the unique characteristics of each segment in mind when
defining policies for account set up, order management, order management, product
management etc.
Products: Identify which products in your offering are most suited for each segment
and create appropriate messaging. Also determine where you are up sell opportunities
be positioned.
Sales/Marketing Programs: Design support programs for your channel that meet their
needs, not what your idea of their needs are. To do this you should start by asking your
customers within this segment.
2.16.4.2 Need and Benefit of Channel Management
 Benefits of working with channel partners, channel management helps to
regulate the action of its partners.
 Reduced cost channel programs.
 Increase efficiency.
 Relationship with your partners is very much closer and you have a better
understanding power of how each of you works with another.
 Channel management is able to do its part to keep everything organized and in
working order.
 It works to improve business for each partner
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2.16.4.3 The Channel mostly followed by the organization:
MANUFACTURER
APEX
Co-operative
Societies
District & Block / GP
Level Coop. Societies
FARMERS
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2.16.4.4 ROAD MAP OF JAGATSINGHPUR DISTRICT
Fig 2.16.4.4 Road Map of Jagatsinghpur District
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2.17 Distribution Channel of Jagatsinghpur District
OSCMF
Balikuda
Raghunathpur
OAIC
15 DEALERS
SHC/MPC
A. Subhalaxmi.
B. Maa Sarala.
C. Sri Aurovind.
D. Gorakhnath.
SCS
A.
Siddheswar
B. Silo
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(By Road Movement from Cuttack rake Point and Paradeep Plant to Jagatsinghpur
District)
2.18 Channel Management by IFFCO
IFFCO is the biggest co-operative organization which distributes its fertilizer
throughout the country and outside the country. The sales of IFFCO fertilizer are done
through cooperatives i.e. State Level Cooperative Marketing Federation, District and
village level societies. Village level societies are also called as Primary Agricultural
credit Societies (PACS) are the backbone of the cooperative system having direct
access to the farmers for supply of fertilizer in village and remote areas. In business of
fertilizer, hiring their warehousing facilities and also gives preference to them for
handling and transportation of IFFCO fertilizer and improved farmer’s access to
DISTRIBUTION OF FERTILIZER
CUTTACK RAKE POINT/ PARADEEP
PLANT
OSCMF OAIC SHC/MPC SCS
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fertilizers. Majority are transported by Rail (85%) and remaining 15% by Road.
Sometimes when there is any critical problem arises in Railway, fertilizers are
transported through Sea route (e.g. from Paradeep Port to Chennai Port).
2.18.1 Steps Taken by IFFCO to strengthen the Co-operatives:
 Selection of Co-operative Societies under various schemes of IFFCO.
 The societies act as franchise to undertake various jobs like rake handling,
transportation, warehousing etc. and sales of IFFCO products through co-
operatives.
 Render benefits to the farmers through “Sankat Haran Bima Yojana”.
 20% of dividend is paid to the members societies for share contribution to
IFFCO.
 Financial assistance for construction of Godown under co-operative
development programme.
 Implementation of IFFCO Kisan Sanchar Ltd. (IK.SL), NCDEX and NCMSL
schemes through co-operative societies.
2.18.2 Promotional Activities done by IFFCO
Need of Brand Promotion
Though the rural markets offer big attraction to the marketers, one of the most
important questions frequently asked is “How do we reach the large rural population
through different media and methods”?
Television
Television has made a great impact and large audience has been exposed to this
medium. Regional TV channels have become very popular especially in rural areas. In
Odisha TV and ETV are more popular channels. IFFCO is frequently using these
channels.
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Radio
Radio reaches large population in rural areas at relatively low cost. IFFCO has been
using this medium to aware about its product to the rural farmers through advertisement
during regional news and agricultural news.
Outdoor Advertisement
This form of media includes signboards, hoarding, tree boards, Bus boards; dealer
boards, product display board etc. are effective in rural areas.
Wall Painting/Road Side Sign Board (RSSB)
It is an effective and economical medium for communication in rural areas. It creates a
large impact on the mind of farmers as this is a stable form which comes in front of his
eyes repeatedly and works as reminder. IFFCO has engaged in this media for its
advertisement.
Field Demonstration
Field demonstration is one of the most effective methods to show the superiority of
company’s products to the customers. A progressive farmer who is an opinion leader
is selected and the demonstration is conducted in his field in the presence of group of
farmers in the village. The farmers observe the results in the field and tries in their own
field. IFFCO has seriously engaged in this practice.
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2.18.3 Other Promotional Activities done by IFFCO itself.
IFFCO has always believed in providing services to their member cooperatives and
farmers by organizing various promotional and educational programs such as
 Farmers Meeting---direct face to face interaction.
 Bio-fertilizer Campaign---use of biological organ.
 Seed Treatment Campaign.
 Plant Protection Campaign.
 Soil Rejuvenation.
 Crop Diversification.
 Renewable of alternate energy.
 Field Day-On Standing Crop of demonstrated field.
 Crop Seminar.
 Demonstration-two plot, special project on new technology.
 Salesmanship Training.
 Agricultural and social campaign.
 Soil testing methodology---Mobile Soil Testing Van (MSTV).
 Construction of storage cum community centres (PACS level).
 Publicity through electronic and print media, v'' Information Technology
(Kriosk).
 Social Scheme- Medical Campaign, Veterinary Campaign, Tree Plantation,
Mega Health Camp.
 Enrichment of organic manure—Phospho-Sulpho-Nitro-Compost (PSNC).
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CHAPTER – 3
DESIGN OF DISSERTATION
3.1 REVIEW OF LITERATURE
Various research studies were conducted on the Topic "Awareness
and Perception of the Brand" which are given below:
 MARKETING MANAGEMENT ( A south Asian Perspective), 13TH
Edition
By — Philip Kotler, Kelvin Keller, Abraham Koshy and Mithileswar Jha
The American Marketing Association defines a brand as "a Name, term, sign,
symbol or design or a combination of them, intended to identify goods or
services of one seller or a group of seller and to differentiate them from those
of competitor". A brand is thus a product or services whose dimensions
differentiate it in some way from other products or services designed to satisfy
the same need. These differences may be functional, rational or tangible, related
to product performance of the brand. They may also be more symbolic or
intangible related to what the brand represents.
According to Kotler, "Marketing Channels are set of inter dependent
organizations involved in the process of making a product or services available
for use or consumption. They are set of pathways a product or services follows
after production, culminating in purchase and use by the final end user".
 Dr. Awasthi U.S has focused in his article IFFCO marketing setup (2010)
that "IFFCO supplies its fertilizer material mostly through cooperative channel.
However, the co-operative societies have no obligation to purchase from
IFFCO. This necessitates a competitive approach to nurture brand loyalty. The
marketing strategy of IFFCO s designed to ensure timely availability of
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reasonably priced quality products right at the doorstep of the farmers through
the nationwide co-operative network. The fertiliser is distributed through Apex
Co-operative Marketing Federations in many states of the country. Direct
supplies to the village level co-operative societies are also undertaken in some
states. Small quantities are provided to other institutional agencies like Agro -
Industries Corporations in some states. IFFCO-NCDC societies and IFFC0's
Farmers Service Centres (FSCs) are also used as outlets for retail sale of
fertilisers. The marketing field setup of IFFCO comprises 5 Zonal Offices, 14
State offices, 2 State-cum-Area Offices and 62 Area Offices. Each Area Office
covers 4 to 6 districts. There are 8 to 10 Field Officers in each Area Office.
They are posted in district and taluka level towns. The field officers work with
the farmers and facilitate the transfer of modern agricultural technology. The
total marketing field force of IFFCO is about 500 persons who are basically
agriculture graduates. Besides performing Marketing functions, they also carry
out extension education programmes for the benefit of the farmers".
 SUNIL LULLA’S VIEWS on BUILDING BRAND IDENTITIES “Brand
reputation bottom line, because it impacts what the consumer thinks of the
brand”
One way to define a brand identity is how Warren Buffet Reputation (he invests in
reputed companies like Coca-Cola, impacts bottom Microsoft, McDonalds, and Gillette
among others) defined line, because it is in a letter to his employees in which he wrote,
“If you impacts what lose dollars for the firm, I will be understanding. If you the
consumer lose reputation for the firm, I will be ruthless.” If one was thinks of the to
look at the above definition from a brand reputation brand... perspective and think of
names like Infosys, TATA, Reliance, Microsoft, Linux, LG, Coke, O & M, J & J,
Lakme, Sony, one would realize that these names are like brands for these corporates
and their reputation is important to them. Even the reputations of brand names like
Airtel, Crocin, Horlicks, Tide, Santro, and Lifebuoy are exceedingly important for the
respective corporations who own these brands. When it comes to managing brand
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identities the starting points can be to look at how can you protect, preserve, grow,
enrich, manage and build your brand reputation by using PR.
 Mr. Arora Deepak has highlighted in his article name “IFFCO's sales cross
US $ 2 billion; makes core projects foray” that
NEW DELHI, May 18: After the grandiose journey in the fertilizer arena, the world's
largest fertilizer cooperative IFFCO has decided to make a big foray into the
infrastructure sector.
This has been possible due to almost 35 per cent percent growth in sales at Rs 9,943
crore and healthy Rs 341 crore net profits during last fiscal, said Dr U S Awasthi,
company's Managing Director.'
With its financial muscle with US $ 2 billion plus sales and technological competence
in fertiliser projects, Dr Awasthi said IFFCO-led trans-national consortium has been
prequalified, based on a global tender, to develop a 22 km long bridge over sea between
Mumbai and Navi Mumbai. This Rs 2,600 crore Mumbai Trans Harbour Link Project
(MTHL) would be across the deep sea connecting Sewri in Mumbai and Nhava in
Nhavi Mumbai.
The consortium includes Italian Thai Development Company Ltd (ITD) of Thailand,
MAEDA Corporation of Japan and ITD Cementation India Ltd. The project to be
developed on Build Operate and Transfer (BOT) basis will be the first such venture in
which IFFCO decided to take on stiff competition from six global consortia. The
contracts are likely to be awarded to the successful bidder in 2007-08. The Indian
Farmers Fertiliser Cooperative Ltd (IFFCO) Chairman, Mr. S.K. Jakhar, disclosed that
in its bid to ride the infrastructure boom, IFFCO has also entered into a joint venture
agreement with Chattisgarh State Electricity Board (CSEB) to develop a 1000 MW
coal-fired power project at Prem Nagar in the State.
The 74: 26 Joint Venture christened as IFFCO Chattisgarh Power Ltd (ICPL) has been
incorporated to take up the project shortly. With 74 percent stake, the IFFCO will also
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have the management control through five of its nominees on the board. Two members
have been inducted from the CESB.
Mr. S.K. Jakhar is also the Chairman of the new joint venture while CSEB Chairman
is the vice-chairperson. IFFCO and its associates will put in Rs 1155 crore towards the
equity in this mega power project while the CSEB would pitch in with Rs 405 crore.
The debt equity ratio for the Rs 5,200 crore venture has been set 70: 30. IFFCO has
nominated its Executive Director Mr M.M.Raheja as the Chief Executive of this power
project.
The project will source coal from the Tara coal block. The projected levelised tariff is
Rs 2.16 per unit. The financial closure for the project would be achieved in 2006- 2007.
CSEB has agreed to buy 90 percent of power generated from this project while the JV
will have the flexibility to trade the rest 10 percent amongst the western states.
Dr Awasthi, informed that while diversifying into infrastructure, IFFCO has continued
its campaign to achieve backward and forward linkages in the fertilizers sector. As part
of this drive, it has floated the Indo Egyptian Fertiliser Co, a joint venture with Egyptian
Government's El Nasr Mining Co. The 76:24 joint venture will set up a plant to produce
around 450,000 tonnes of phosphoric acid (P205) annually.
IFFCO will enter into a 100 percent buyback arrangement for the phosphoric acid
produced from the JV. Dr. Awasthi said that Mr. S K Jakhar is the Chairman of 1EFC.
Washington based International Finance Corporation (IFC) has been retained as the
financial advisor to the joint venture. A four-member board of directors has been
constituted for the Cairo-based Joint Venture. IFFCO nominee C.P.Srivastava has
taken over as the Chief Executive of the company in which US $ 325 million
investment would be made. Shareholders agreement has already been signed for the
JV.
Dr. Awasthi informed that IFFCO has commitment to reduce the subsidy since it has
taken all important steps to switch over from Naphtha to Gas. IFFCO's Phulpur Unit,
that has a capacity to produce 14.16 lakh MT of Urea per annum, was operating on
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Naphtha as a feed stock. This Unit has now switched over from Naphtha to Gas which
shall result in reduction in Govt. Subsidy Bill by around Rs. 1,000 crore per year. Mr.
Jakhar expressed pleasure at the commencement of production at the recently acquired
Paradeep Unit after revamp. The plant is running continuously and the load shall be
increased gradually.
IFFCO's sales turnover crosses US $ two billion, marks an around 35 per cent jump
over previous financial year's Rs 7397 crore. The surge in sales turnover is due to
highest sale of fertilizers at 81.95 lakh tonnes. Fertiliser production touched 64.35 lakh
tonnes. This is against 61.54 lakh tonnes in 2004-05. Net profit increased to Rs 341
crore from Rs. 298 crore in the previous year, a jump of around 15 per cent. After
takeover from Oswals, operations at Paradeep plant revamped. The unit would produce
15.75 lakh tonnes during 2006-07, added Dr Awasthi.
 Mr. Gupta. Lehmann and Stuart (2004) find that “customer acquisition and
retention expenses have a significant, positive effect on firm value. Other
studies report a positive relationship between a firm’s CRM technology
investment and CRM performance.”
 Reinartz, Krafft and Hoyer 2004 find that “extant research offers few insights
on the strategic choices that are associated with the effective deployment of
CRM. This remiss because strategic conduct influences the effect of customer
satisfaction on firm value.”
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3.2 NEED FOR THE STUDY
Brand Equity describes about the value of having the brand name IFFCO, in
terms of price and quality. Brand expansion to target customer market helps to
increase and leverage brand equity for the particular brand. Brand management
is a communication function in marketing that includes analysis and planning
on how that brand is positioned in the market, which target public the brand is
targeted at, and maintaining a desired reputation of the brand. Developing a
good relationship with target publics is essential for brand management. Brand
Management is used for increasing the long term brand equity. Awareness and
perception about the particular brand so as to reach out to maximum customers.
3.3 OBJECTIVES OF THE STUDY:
 To study branding image of IFFCO in the prescribed areas.
 To find out the most effective tool of communication in reaching the farmers.
 To find out the satisfaction level of farmers in the district of Jagatsinghpur.
3.4 SCOPE OF THE STUDY:
 There are beneficiaries of IFFCO products who can be available for
disseminating information.
 The study will provide chance to understand farmers problems.
 The study will expose the difficulties in brand and channel development.
 Farmer's feedback will be useful for further development of strategy to improve
brand image and channel.
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3.5 RESEARCH METHODOLOGY
Type of Research
It is one kind of Explorative Research conducted to find out farmers views with
regard to the subject. Here the researcher rises to understand and study various
factors and ideas for getting information which can be applied for further
development of concepts.
Research Approach
The research includes both Quantitative and Qualitative approach as it involves
both numerical data about the sales and production and less tangible subjects
like values, views, attitudes, perceptions of the farmers about the products.
Universe
Here the Universe for the study comprises all the farmers, Co-operatives and
Dealers/Retailers of IFFCO products of Nuagaon and Balikuda block of
Jagatsinghpur District.
Sample Design
Sample Unit - i) Farmer
ii) Co-operative
iii) Retailer
Sample Size - The study will address samples.
Farmers — 50
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3.6 DATA COLLECTION
 Primary Source:
A structured Interview Schedule was prepared for conducting interviews. Then data
was collected based on the interview schedule which can be performed through
personal Interviews and discussions with the farmers, society members, co-
operative staffs and dealers of the two blocks.
 Secondary Source:
 Economic Survey Reports of Odisha Govt.
 Census Reports of Govt. of India.
 Information gathered from block office.
 Data from IFFCO State Marketing Office, Bhubaneswar.
 Data from IFFCO field offices of Jagatsinghpur District.
 Data from various Co-operatives.
3.7 SAMPLING
Here we have followed stratified Random Sampling Method under which
selected one district out of the state. Then have chosen two blocks out of the
seven blocks of the district at random and fifty samples belonging to the two
blocks where IFFCO beneficiaries were available for disseminating
information. The Jagatsinghpur District in the state of Odisha was sampled.
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3.8 PLAN OF ANALYSIS
The result is to be critically analysed and every aspect of the objectives to be
dealt with great detail. The findings are to be reported with the help of suitable graphs
& diagrams wherever required. The comparative analytical findings are to be reported
for most aspects of the objectives.
3.9 LIMITATION OF THE STUDY
 Time allotted for such a study is very limited. The study requires adequate time
and involvement of more number of researchers.
 As the study covers vast areas, it becomes a hard task for an individual to get
all the related data. The study could have been even better if it would have been
done in a group.
 Some farmers were seemed to be reluctant to give information as they are only
concerned about the ground realities. It is their perception that they have
nothing to do with the study.
 Study of other districts and areas could have given some better results.
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3.10 CHAPTER SCHEME
Chapter 1: Introduction
It provides and insight and Introduction about Industry Scenario - Macro and Micro
(relating to the industry of the dissertation) and Theoretical background of the topic.
Chapter 2: Profile of the organization/s
The chapter is concerned with the introduction and background of the Fertilizer
Industry with reference to IFFCO as a whole which gives detailed information about
the origin, growth, products, competitors, market share, milestones, awards, csr and its
future.
Chapter 3: Design of dissertation
It consists of detailed coverage of the manner in which the report is prepared. This
chapter helps to understand the practical steps adopted to reach the data and methods
of analysis and interpreting the response. It also includes Literature review, Need for
the study, Objectives of the study, Scope of the study, Methodology, Data collection,
Sampling, Plan of analysis, and Limitations of the study.
Chapter 4: Data analysis and Interpretation
The data collected from the study will be presented and analyzed using appropriate
statistical tools for interpretation and providing relevant suggestions.
Chapter 5: Summary of findings, Conclusions and Suggestions
The suggestions are based on the findings of the study and conclusion is made.
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CHAPTER - 4
4.1 DATA ANALYSIS AND INTERPRETATION
Data analysis and interpretation plays an important role in turning quantity of paper
into defensible, actionable sets of conclusions and reports. It is actually a set of method
and technique that can be used to obtain information and insights from data.
It can lead the researcher to get information and insights that would not be available. It
can help to avoid erroneous judgments and conclusion. It can provide a background to
help interpret and understand analysis conducted by others. Knowledge of power of
data analysis techniques can constructively influence research objectives and research
design.
Data analysis can be a powerful aid to gain useful knowledge from the data collected.
Inappropriate or misused data analysis has the potential to ruin a well-designed study
and can suggest judgments and conclusions that are unclear and incomplete.
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 75
 IFFCO’s Production of Fertilizers from 2008-09 to 2012-13
Fig 4.1.1 Total Fertilizer Production from 2008-2013
Interpretation:
The chart reveals that there is a continuous increasing orders in production from 70.12
Lakh MT during 2008-09 to 85.83 Lakh MT during 2012-13 except the slight fall in
production during 2009-10.
0
10
20
30
40
50
60
70
80
90
100
2008-09 2009-10 2010-11 2011-12 2012-13
Total Fertilizer Production(Lakh MT)
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 76
 IFFCO’s Sales volume of Fertilizers from 2008-09 to 2012-13
Fig 4.1.2 Total Sales Volume of Fertilizer from 2008-2013
Interpretation:
There is continuous increase in sales of fertilizers from 86.10 Lakh MT during 2008-
09 to 125.88 Lakh MT during 2012-13
0
20
40
60
80
100
120
140
2008-09 2009-10 2010-11 2011-12 2012-13
Total Sales Volume Of Fertilizer (Lakh MT)
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 77
AGENCY WISE SALES OF IFFCO UREA IN ORISSA
YEAR PRODUCT OSCMF OAIC COOP TOTAL
2009-
2010
UREA 135068 55627 50956 241651
2010-
2011
UREA 136667 39307 63806 239777
2011-
2012
UREA 137075 40450 62420 239945
2012-
2013
UREA 137508 42560 64450 244518
Table 4.1.3 Agency Wise Sales of IFFCO Urea in Odisha
Fig 4.1.3 Agency Wise Sales from 2008-2013
0
50000
100000
150000
200000
250000
OSCMF OAIC COOP TOTAL
Agency Wise Sales Of IFFCO Urea In Odisha
2009-2010 2010-2011 2011-2012 2012-2013
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 78
Interpretation: Statistics tells that there is slight decrease in sales of Urea in Odisha
from 2007-11. If we analyze it agency wise then the sales has no much fluctuated in
case of co-operatives but there is was a great variation in other agencies.
4.1.4 Total Sales Volume of Fertiliser during Kharif & Rabi
Season (MT) of Jagatsinghpur District
Table 4.1.4 Total Sales Volume of fertilizer during Kharif and Rabi season
YEAR KHARIF
SEASON
RABI SEASON TOTAL
2010-2011 5683.25 2484.60 8167.85
2011-2012 6280.45 3330.50 9610.95
2012-2013 9286.25 3506.00 12792.25
Interpretation:
In Jagatsinghpur District, maximum fertiliser has been utilized during Kharif season as
compared to Ravi season.
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 79
4.1.1 DATA COLLECTED FROM THE RESPONDENTS OF
JAGATSINGHPUR DISTRICT.
 Educational attainment of the farmers.
Education No. Of Farmers
Illiterate 07
Primary 17
High-school 18
College 08
Table 4.1.1.1 Educational attainment of farmers
Fig 4.1.1.1 Educational attainment of farmers
Interpretation: About 39% farmers are having primary education. 42% farmers are
matriculate. 3% farmers are having qualification more than matriculation and about
16% of farmers under study are illiterate.
16%
39%
42%
3%
Educational Attainment Of Farmers
Illiterate
Primary
High-school
College
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 80
 Land holding capacity of farmers in hectors.
Land Holding No. Of farmers
Less Than One Hector 16
One To Five Hector 22
Five To Ten Hectors 7
More Than Ten Hectors 5
Table 4.1.1.2 Land Holding Capacity of farmers
Fig 4.1.1.2 Land Holding Capacity of Farmers
Interpretation:
In this block 44% of the farmers are having one to five hectors of land, 14% are having
5 to 10 hectors, 10% farmers have more than 10 hectors of land and 32% of farmers
have less than one hector of land.
32%
44%
14%
10%
Land Holding Capacity Of farmers
Less Than One Hector
One To Five Hector
Five To Ten Hectos
More Than Ten Hectors
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 81
 Irrigation Facility of Agricultural Land.
Fig 4.1.1.3 Irrigation facility to farmers
Interpretation:
In this block 40% of the farmers are having irrigation facilities where as 60% are having
no irrigation facilities.
60%
40%
Irrigation Facility To farmers
Irrigated Land
Non-Irrigated Land
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 82
 Source of information used for farming
Source No. Of Farmers
Radio 11
TV 19
Newspaper 7
Others (Govt Agri/KVK/FM) 13
Table 4.1.1.4 Sources of Information Used for farming
Fig 4.1.1.4 Sources of Information
Interpretation:
It was shown that the farmers are mostly aware about the agriculture through the TV
which became the source of information for 38% farmers. 22% farmers depend on
Radio, 14% depend on the newspaper and 26% on different sources for farming
information.
22%
38%
14%
26%
Sources Of Information
Radio
TV
Newspaper
Others
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 83
 Brand selection of fertilizers by the farmers:
Fertilizer Brands No. Of Farmers
IFFCO 14
NAGARJUNA 10
IPL….MOP 05
NAVRATNA(PPL) 17
CIL 04
OTHERS 00
Table 4.1.1.5 Brand Selection Of fertilizers by Farmers
Fig 4.1.1.5 Fertilizer Brand Selection
Interpretation: 34% of farmers like to use Navaratna (PPL) fertilizers, whereas the
IFFCO fertilizer was used by 28% farmers, 20% of farmers use Nagarjuna Brand of
Urea, 10% of farmers use IPL products and 8% of farmers use CFL Products.
0
2
4
6
8
10
12
14
16
18
FERTILISERBRAND SELECTION
NO. OF FARMERS
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 84
 Where do you get the fertilizer?
CO-OPERATIVE 22%
RETAILER & DEALERS 78%
Table 4.1.1.6 Sources of getting Fertilizer
Fig 4.1.1.6 Sources of getting Fertilizer
Interpretation:
About 22% of farmers of two blocks purchase fertilizers from cooperatives whereas
about 78% of farmers purchase from retailers and dealers.
22%
78%
SOURCES OF GETTING FERTILIZER
CO-OPERATIVE
RETAILER & DEALERS
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 85
 Market Situation of Urea fertilizer
Fig 4.1.1.7 Demand of Urea Fertilizer
Interpretation:
In Urea segment of Raghunathpur and Balikuda block, the major competition is
between IFFCO Urea and NAGARJUNA Urea, where IFFCO Urea has acquired 70%
share of market and NAGARJUNA Urea has acquired 30% of market share.
30%
70%
DEMAND OF UREA FERTILIZER
NAGARJUNA UREA
IFFCO UREA
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 86
 Market Situation of DAP fertilizer
Fig 4.1.1.8 Market Situation of Dap Fertilizer
Interpretation:
In DAP segment in the block IFFCO has acquired 60% share of market where as
Navaratna DAP has acquired 40% share.
60%
40%
EFFECT OF DAP FERTILIZER
IFFCO DAP
NAVRATNA DAP
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 87
 Have you heard about NPK?
Fig 4.1.1.9 Aware of NPK Product
Interpretation:
67% of farmers were aware about NPK product where as 33% of farmers did not know
the product.
.
67%
33%
AWAREOF NPK PRODUCT
YES
NO
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 88
 From which source you have heard about IFFCO?
SOURCES RESPONDENTS
RADIO 05
TV 08
NEWSPAPER 02
FRIENDS 09
AGRI MEETING/PP/IKSL/ITGI/SCS 22
OTHERS 04
Table 4.1.1.9 Sources of knowing about IFFCO
Fig 4.1.1.10 Sources of Knowing about IFFCO
Interpretation: Most of the farmers know about the product from Agri.
Meetings/PP/IKSL/ITGI/SCS i.e. 44% 16% of fanners knew about IFFCO from TV,
10% knew from Radio, 4% of farmers know about the product from News Paper, 18%
knows from friends and 8% came to know about the product from different sources
0
5
10
15
20
25
RADIO TV NEWSPAPER FRIENDS AGRI
MEETINGS
OTHERS
SOURCES OF KNOWING ABOUT IFFCO
RESPONDENTS
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 89
 Why prefer this IFFCO brand?
VARIABLES NO. OF FARMERS
LOW PRICE 08
EASY AVAILABILITY 19
PRODUCTIVITY 10
AGGRESSIVE PROMOTION 08
OTHER FARMERS ARE USING 05
Table 4.1.1.10 Why prefer IFFCO
Fig 4.1.1.11 Why Prefer IFFCO
Interpretation: It is evident from the above data that productivity or the quality of
fertilizer plays an important role in purchasing a particular brand of fertilizer followed
by availability and low price.
0
2
4
6
8
10
12
14
16
18
20
LOW PRICE EASY
AVAILABILITY
PRODUCTIVITY AGGRESSIVE
PROMOTION
OTHERS
NO. OF FARMERS
NO. OF FARMERS
INDIAN FARMERS COOPERATIVE LIMITED
KOSHYS INSTITUTE OF MANAGEMENT STUDIES 90
 Opinion of PACS on the delay faced in product transportation.
Generally transportation cost by road is more than the Rail transport. The company
therefore prefers to transport major part by Rail. In such situation societies have to wait
for their requirement and as a result delay occurs. In this respect, 40% of PACS agree
to the above limitations in supplying the IFFCO product according to the consumer
requirement.
Fig 4.1.1.12 Opinion of PACS Regarding delay
40%
60%
OPINION OF PACS REGARDING DELAY
YES
NO
PROJECT
PROJECT
PROJECT
PROJECT
PROJECT

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PROJECT

  • 1. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 1 CHAPTER - 1 INDUSTRY SCENARIO 1.1 INDUSTRY PROFILE Fertilizer (or fertiliser) is any organic or inorganic material of natural or synthetic origin (other than liming materials) that is added to soil to supply one or more plant nutrients essential to the growth of plants. Conservative estimates report 30 to 50% of crop yields are attributed to natural or synthetic commercial fertilizer. Global market value is likely to rise to more than US$185 billion until 2019. The European fertilizer market will grow to earn revenues of approx. €15.3 billion in 2018. Mined inorganic fertilizers have been used for many centuries, whereas chemically synthesized inorganic fertilizers were only widely developed during the industrial revolution. Increased understanding and use of fertilizers were important parts of the pre-industrial British Agricultural Revolution and the industrial Green Revolution of the 20th century. Inorganic fertilizer use has also significantly supported global population growth — it has been estimated that almost half the people on the Earth are currently fed as a result of synthetic nitrogen fertilizer use. Fertilizers typically provide, in varying proportions:  Six macronutrients: nitrogen (N), phosphorus (P), potassium (K), calcium (Ca), magnesium (Mg), and sulfur (S);  Eight micronutrients: boron (B), chlorine (Cl), copper (Cu), iron (Fe), manganese (Mn), molybdenum (Mo), zinc (Zn) and nickel (Ni) (1987). The macronutrients are consumed in larger quantities and are present in plant tissue in quantities from 0.15% to 6.0% on a dry matter (0% moisture) basis (DM).
  • 2. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 2 Micronutrients are consumed in smaller quantities and are present in plant tissue on the order of parts per million (ppm), ranging from 0.15 to 400 ppm DM, or less than 0.04% DM. Only three other structural elements are required by all plants: carbon, hydrogen, and oxygen. These nutrients are supplied by water (through rainfall or irrigation) and carbon dioxide in the atmosphere. Management of soil fertility has been the pre-occupation of farmers for thousands of years. The start of the modern science of plant nutrition dates to the 19th century and the work of German chemist Justus von Liebig, among others. John Bennet Lawes, an English entrepreneur, began to experiment on the effects of various manures on plants growing in pots in 1837, and a year or two later the experiments were extended to crops in the field. One immediate consequence was that in 1842 he patented a manure formed by treating phosphates with Sulphuric acid, and thus was the first to create the artificial manure industry. In the succeeding year he enlisted the services of Joseph Henry Gilbert, with whom he carried on for more than half a century on experiments in raising crops at the Rothamsted Experimental Station. The Birkeland–Eyde process was one of the competing industrial processes in the beginning of nitrogen based fertilizer production. It was developed by Norwegian industrialist and scientist Kristian Birkeland along with his business partner Sam Eyde in 1903, based on a method used by Henry Cavendish in 1784. This process was used to fix atmospheric nitrogen (N2) into nitric acid (HNO3), one of several chemical processes generally referred to as nitrogen fixation. The resultant nitric acid was then used as a source of nitrate (NO3-) in the reaction HNO3 → H+ + NO3-
  • 3. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 3 Which may take place in the presence of water or another proton acceptor. Nitrate is an ion which plants can absorb. A factory based on the process was built in Rjukan and Notodden in Norway, combined with the building of large hydroelectric power facilities. The Birkeland-Eyde process is relatively inefficient in terms of energy consumption. Therefore, in the 1910s and 1920s, it was gradually replaced in Norway by a combination of the Haber process and the Ostwald process. The Haber process produces ammonia (NH3) from methane (CH4) gas and molecular nitrogen (N2). The ammonia from the Haber process is then converted into nitric acid (HNO3) in the Ostwald process. Fertilizers come in various forms. The most typical form is solid fertilizer in granulated or powdered forms. The next most common form is liquid fertilizer; some advantages of liquid fertilizer are its immediate effect and wide coverage. There are also slow-release fertilizers (various forms including fertilizer spikes, tabs, etc.) which reduce the problem of "burning" the plants due to excess nitrogen. Polymer coating of fertilizer ingredients gives tablets and spikes a 'true time-release' or 'staged nutrient release' (SNR) of fertilizer nutrients. More recently, organic fertilizer is on the rise as people are resorting to environmental friendly (or 'green') products. Although organic fertilizers usually contain a lower concentration of nutrients, this lower concentration avoids complication of nitrogen burn harming the plants. In addition, organic fertilizers such as compost and worm
  • 4. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 4 castings break down slowly into complex organic structures (humus) which build the soil's structure and moisture- and nutrient-retaining capabilities. Fertilizers are broadly divided into organic fertilizers (composed of organic plant or animal matter), or inorganic or commercial fertilizers. Plants can only absorb their required nutrients if they are present in easily dissolved chemical compounds. Both organic and inorganic fertilizers provide the same needed chemical compounds. Organic fertilizers provided other macro and micro plant nutrients and are released as the organic matter decays—this may take months or years. Organic fertilizers nearly always have much lower concentrations of plant nutrients and have the usual problems of economical collection, treatment, transportation and distribution. Inorganic fertilizers nearly always are readily dissolved and unless added have few other macro and micro plant nutrients nor added any 'bulk' to the soil. Nearly all nitrogen that plants use is in the form of NH3 or NO3 compounds. The usable phosphorus compounds are usually in the form of phosphoric acid (H3PO4) and the potassium (K) is typically in the form of potassium chloride (KCl). In organic fertilizers nitrogen, phosphorus and potassium compounds are released from the complex organic compounds as the animal or plant matter decays. In commercial fertilizers the same required compounds are available in easily dissolved compounds that require no decay—they can be used almost immediately after water is applied. Inorganic fertilizers are usually much more concentrated with up to 64% (18-46-0) of their weight being a given plant nutrient, compared to organic fertilizers that only provide 0.4% or less of their weight as a given plant nutrient. Nitrogen fertilizers are often made using the Haber-Bosch process (invented 1909) which uses natural gas (CH4+) for the hydrogen and nitrogen gas (N2) from the air at an elevated temperature and pressure in the presence of a catalyst to form ammonia (NH3) as the end product. This ammonia is used as a feedstock for other nitrogen fertilizers, such as anhydrous ammonium nitrate (NH4NO3) and urea (CO (NH2)2). These concentrated products may be diluted with water to form a concentrated liquid fertilizer (e.g. UAN). Deposits of sodium
  • 5. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 5 nitrate (NaNO3) (Chilean saltpeter) are also found the Atacama Desert in Chile and was one of the original (1830) nitrogen rich inorganic fertilizers used. It is still mined for fertilizer. In the Nitro phosphate process or Odda Process (invented in 1927), phosphate rock with up to a 20% phosphorus (P) content is dissolved with nitric acid (HNO3) to produce a mixture of phosphoric acid (H3PO4) and calcium nitrate (Ca(NO3)2). This can be combined with a potassium fertilizer to produce a compound fertilizer with all three N: P: K plant nutrients in easily dissolved form. Phosphate rock can also be processed into water-soluble phosphate (P2O5) with the addition of sulfuric acid (H2SO4) to make the phosphoric acid in phosphate fertilizers. Phosphate can also be reduced in an electric furnace to make high purity phosphorus; however, this is more expensive than the acid process. Potash can be used to make potassium (K) fertilizers. All commercial potash deposits come originally from marine deposits and are often buried deep in the earth. Potash ores are typically rich in potassium chloride (KCl) and sodium chloride (NaCl) and are obtained by conventional shaft mining with the extracted ore ground into a powder. For deep potash deposits hot water is injected into the potash which is dissolved and then pumped to the surface where it is concentrated by solar induced evaporation. Amine reagents are then added to either the mined or evaporated solutions. The amine coats the KCl but not NaCl. Air bubbles cling to the amine + KCl and float it to the surface while the NaCl and clay sink to the bottom. The surface is skimmed for the amine + KCl which is then dried and packaged for use as a K rich fertilizer—KCl dissolves readily in water and is available quickly for plant nutrition. Compound fertilizers often combine N, P and K fertilizers into easily dissolved pellets. The N: P: K ratios quoted on fertilizers give the weight percent of the fertilizer in nitrogen (N), phosphate (P2O5) and potash (K2O equivalent)
  • 6. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 6 The use of commercial inorganic fertilizers has increased steadily in the last 50 years, rising almost 20-fold to the current rate of 100 million tonnes of nitrogen per year. Without commercial fertilizers it is estimated that about one-third of the food produced now could not be produced. [17] The use of phosphate fertilizers has also increased from 9 million tonnes per year in 1960 to 40 million tonnes per year in 2000. A maize crop yielding 6–9 tonnes of grain per hectare requires 31–50 kg of phosphate fertilizer to be applied, soybean requires 20–25 kg per hectare. 1.2 FERTILIZER INDUSTRY IN INDIA India is the second biggest consumer of fertilizer in the world next only to China. The Indian Fertilizer companies produced around 37.6 million tonnes of fertilizer in the year 2012-13 with a 9% rise in comparison to 34.6 million tonnes of last year ( 2011- 12 ) production. However, the total availability was short of demand and was met through imports. Of total fertiliser production, urea output increased to 23.3 million tonnes in FY12-13 from 21.8 million tonnes in FY11-12 due to better capacity utilization. While production of di-ammonium phosphate (DAP) may touch 4.3 million tonne from 3.6 million tons this year, output of NPK (nitrogen, phosphate and potassium) could rise to 10 million tonnes from 9.2 million tonnes in the current period. The entire requirement of around five million tonnes of Potassic fertilizers would be met through imports as India does not have commercially viable sources of potash. With a view to make the nation self-sufficient in urea fertiliser, the Fertiliser Ministry has moved a proposal to boost investment in the sector. The fertilizer subsidy bill for FY 2012-13 is expected to increase by Rs 10,000 crore in respect of the budgeted estimates. In current financial year FY 2012-13 the subsidy bill would reach to Rs 70,974 crore while it was estimated as Rs 60,974 crore in the budget. The government planned to contain subsidy within 2% of the GDP in FY 2012-13 but due to
  • 7. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 7 international conditions like depreciating Rupee and oil prices subsidies rose to 2.6 % of GDP. The Kelkar Committee has proposed certain initiatives to whittle down subsidies to 2 per cent in FY 2013-14 and 1.8 % in FY 2014-15. Agriculture the backbone of Indian Economy still holds its relative importance for more than a billion peoples. The Government of India from time to time has taken considerable steps for the upliftment of Agriculture Sector. Here we have analyzed the performance of Fertilizer Industry being one of the vital parts in agricultural production and Government's policy initiatives for the same. Fertilizer in the agricultural process is an important area of concern. Fertilizer industry in India has succeeded in meeting the demand of all chemical fertilizers in the recent years. The Fertilizer Industry in India started its first manufacturing unit of Single Super Phosphate (SSP) in Ranipet near Chennai with a capacity of 6000 MT a year. India's green revolution in late sixties gave a positive boost to the sector. The sector experienced a faster growth rate and presently India is the third largest fertilizer producer in the world. According to Given Statistics, total capacity of the industry as on 30.01.2003 has reached a level of 121.10 lakh MT of nitrogen (inclusive of an installed capacity of 208.42 lakh MT of urea after reassessment of capacity) and 53.60 lakh MT of phosphatic nutrient. Presently there are 57 large fertilizers plants in the country producing urea, DAP, Complex fertilizer, Ammonium Sulphate (AS) and Calcium Ammonium Nitrate (CAN).
  • 8. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 8 1.3 THEOREITICAL BACKGROUND OF THE TOPIC 1.3.1 BRAND AWARENESS Brand awareness is the extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Expressed usually as a percentage of the target market, brand awareness is the primary goal of advertising in the early months or years of a product's introduction. Brand awareness is related to the functions of brand identities in consumers’ memory and can be reflected by how well the consumers can identify the brand under various conditions. Brand awareness includes brand recognition and brand recall performance. Brand recognition refers to the ability of the consumers to correctly differentiate the brand they previously have been exposed to. This does not necessarily require that the consumers identify the brand name. Instead, it often means that consumers can response to a certain brand after viewing its visual packaging images. Brand recall refers to the ability of the consumers to correctly generate and retrieve the brand in their memory. A brand name that is well known to the great majority of households is also called a household name. 1.3.2 Importance Brand awareness plays a major role in a consumer’s buying decision-making process. During this process, the category need is stimulated first. For example, you need to do food shopping. You will only write down the food categories, like chocolate, instead of brand names on your list. You will scan the packages of chocolate on the shelf and recognize different brands. Such recognition might be based on the knowledge of an acquaintance or friend having used the product in the past or constant advertisement. In this situation, brand awareness does not require brand recall because brand awareness may occur along with brand recognition. However, in other situations, brand recall is required. For instance, you are in a hurry and want to grab a bite at a fast-food restaurant. It is not possible for you to drive around and make a decision. You need to
  • 9. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 9 retrieve different fast-food brands in your memory, choose one and go there directly. In this situation, constant advertisement is important in consumers’ memory retrieval because the consumers are willing to go to the first brand that can be recalled. 1.3.3 Measures of Brand Awareness Aided Awareness - This type of awareness is generated in a consumer. When asked about a product category, if the consumer is aided with a list of company names and he recognizes the company from the given set it is categorized as aided awareness. Spontaneous awareness -When asked about a product category, the consumers are asked to list brands they know without any cues. Top of the mind Awareness - When the name of the company is automatically recollected because the consumer very promptly associates the brand with the product category, it is called a top of the mind awareness of the product. It’s the first brand name listed by the consumers when asked to name brands they know without any cues. 1.4 BRAND PERCEPTION Brand perception refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. And, at the root of these marketing effects is consumer’s knowledge. Perception is more complex; it’s the “what” and the “why” of the brand. Perception is created through experience with the brand’s product or service and it reflects the values consumers have attached to it.
  • 10. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 10 CHAPTER-2 PROFILE OF THE ORGANIZATION TABLE 2.1 COMPANY PROFILE Type Cooperative Industry Fertilizer, Agri-Products, Agricultural Development Founded 3 November 1967 Headquarters IFFCO Sadan C-1, District Centre, Saket Place, New Delhi-110017, India Area served India Key people Balvinder Singh Nakai, Chairman Dr. Udai Shanker Awasthi, MD&CEO Products Fertilizers Revenue 211.9 billion (US$3.6 billion) (2010– 11) Net income 7.914 billion (US$130 million) (2010–11) Employees 8000 Website www.iffco.in www.iffco.coop www.iffcoindia.com www.iffcolive.com
  • 11. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 11 2.1 IFFCO: Indian Farmer’s Success Story During mid- sixties the Co-operative sector in India was responsible for distribution of 70 percent of fertilizers consumed in the country. This Sector had adequate infrastructure to distribute fertilizers but had no production facilities of its own and hence dependent on public/private Sectors for supplies. To overcome this lacuna and to bridge the demand supply gap in the country, a new cooperative society was conceived to specifically cater to the requirements of farmers. It was a unique venture in which the farmers of the country through their own Co-operative Societies created this new institution to safeguard their interests. The number of co-operative societies associated with IFFCO have risen from 57 in 1967 to 39,824 at present. Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of the Multistate Cooperative Societies act 1984 & 2002, the Society is deemed to be registered as a Multistate Cooperative Society. The Society is primarily engaged in production and distribution of fertilizers. The byelaws of the Society provide a broad frame work for the activities of IFFCO as a Cooperative Society. IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant at Kandla both in the, state of Gujarat in 1975. Another ammonia - urea complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla was commissioned in 1988. IFFCO has taken equity in National Commodity and Derivative Exchange (NCDEX) and National Collateral Management Services Ltd (NCMSL). IFFCO Chattisgarh Power Ltd (ICPL) which is under implementation is yet another foray to move into core area of power. IFFCO is also behind several other companies with the sole intention of benefitting farmers. The distribution of IFFCO's fertilizer is undertaken through over 39824 cooperative societies. The entire activities of Distribution, Sales and Promotion are co-ordinated by
  • 12. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 12 Marketing Central Office (MKCO) at New Delhi assisted by the Marketing offices in the field. In addition, essential agro-inputs for crop production are made available to the farmers through a chain of 158 Farmers Service Centre (FSC). IFFCO has promoted several institutions and organizations to work for the welfare of farmers, strengthening cooperative movement, improve Indian agriculture. Indian Farm Forestry Development Cooperative Ltd (IFFDC), Cooperative Rural Development Trust (CORDET), IFFCO Foundation, Kisan Sewa Trust belong to this category. An ambitious project 'ICT Initiatives for Farmers and Cooperatives' is launched to promote e-culture in rural India. IFFCO obsessively nurtures its relations with farmers and undertakes a large number of agricultural extension activities for their benefit every year. At IFFCO, the thirst for ever improving the services to farmers and member co- operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission. All that IFFCO cherishes in exchange is an everlasting smile on the face of Indian Fanner who forms the moving spirit behind this mission. IFFCO, today, is a leading player in India's fertilizer industry and is making substantial contribution to the efforts of Indian Government to increase food grain production in the country. Indian Farmers Fertiliser Cooperative Limited, which is also known IFFCO, is the world’s largest fertilizer cooperative federation which is based in India which is registered as a Multistate Cooperative Society. IFFCO has 40,000 member cooperatives. IFFCO has been ranked 37 in top companies in India in 2011 by Fortune India 500 list.
  • 13. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 13 2.2 MISSION OF IFFCO IFFCO's mission is 'to enable Indian farmers to prosper through timely supply of reliable, high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activities to improve their welfare"  To provide to farmers high quality fertilizers in right time and in adequate quantities with an objective to increase crop productivity.  To make plants energy efficient and continually review various schemes to conserve energy.  Commitment to health, safety, environment and forestry development to enrich the quality of community life.  Commitment to social responsibilities for a strong social fabric.  To institutionalize core values and create a culture of team building, empowerment and innovation which would help in incremental growth of employees and enable achievement of strategic objectives.  Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for stake holders.  Building a value driven organization with an improved and responsive customer focus. A true commitment to transparency, accountability and integrity in principle and practice.  To acquire, assimilate and adopt reliable, efficient and cost effective technologies.  Sourcing raw materials for production of phosphatic fertilizers at economical cost by entering into Joint Ventures outside India.  To ensure growth in core and non-core sectors.  A true Cooperative Society committed for fostering cooperative movement in the country.  Emerging as a dynamic organization, focusing on strategic strengths, seizing opportunities for generating and building upon past success, enhancing earnings to maximize the shareholders' value.
  • 14. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 14 OBJECTIVES IFFCO strives to realize its mission through a wide spectrum of activities. These activities are defined in IFFCO's Bye Laws which are listed below.  The objective of IFFCO shall be to promote the economic interest of its members by conducting its affairs in professional, democratic and autonomous manner through self-help and mutual cooperation for undertaking manufacture/production/development of chemical fertilizers, bio-fertilizers, petrochemicals, refining industrial chemicals, and hydrocarbon, their inputs and technologies, and allied products/bye-products and conversion, storage, transportation and marketing; undertaking manufacture/processing/conversion of farm and forestry products, bio-technology, pisciculture and aqua-farming, agriculture machinery and implements and other agricultural inputs/outputs and their conversion, storage, transportation and marketing and undertake trading, shipping, transportation, communication and telecommunication, information technology, power generation and distribution from conventional or non- conventional energy sources, housing, real estate, construction, banking and insurance and to undertake such other activities which are conducive and incidental thereto.  In furtherance of above objects, IFFCO may undertake one or more of the following activities which are indicative but not limited to: a) To set up Plant or Plants for manufacturing of chemical fertilizers and allied products/bye-products. b) To undertake production, processing and also manufacture of insecticides, pesticides, seeds, agricultural machinery and implements and other agricultural production requisites by setting up or taking on lease manufacturing units either directly or in collaboration with or as a joint venture with other Cooperative Institution/Public Sector Enterprise or any other agency.
  • 15. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 15 c) To acquire, establish, construct, provide and maintain and administer factories, townships, estates, railway sidings, build yards, wells, water reservoirs, channels, pumping installations, purification plants, pipe lines, carriages, storage sheds and accommodation of all descriptions for facilitating the business of IFFCO. d) To manufacture, store, maintain, sell, buy, repair, alter, exchange, let on hire, export, import and deal in all kinds of articles and things which may be required for the purpose of any of the business of IFFCO or are commonly supplied or dealt in by persons engaged in any such business or which may seem capable of being profitably dealt in connection with any of the business of IFFCO. e) To act as warehousing agency under the Warehousing Act and own and construct its own Godowns or hire Godowns for the storage of fertiliser and other goods. f) To set up storage units for storing fertilizers and other goods by itself or in collaboration with any other Cooperative Institution or any other agency. g) To maintain transport units of its own or in collaboration with any other organization in India or abroad for movement of goods by land and sea, etc. h) To acquire, take on lease or hire land, buildings, fixtures and vehicles and to sell, give on lease or hire them for the business of IFFCO. i) To promote and organize other Cooperative Societies which are in the field of manufacturing, production and marketing of fertilizers and other agricultural production requisites. j) To enter into the contracts and collaboration for purchases, production, manufacture and marketing of raw materials, auxiliary products, packing materials, finished products, bye-products and other waste products and also enter into joint marketing and product exchange agreements with other Cooperative Institutions, Public Sector Undertakings or any other agency. k) To enter into collaboration with Cooperatives or others in India or in foreign countries for machinery and equipment, and for technical know-how, consultancy, designing, engineering, construction, erection, operation and
  • 16. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 16 maintenance of fertiliser, chemical and other Plants and marketing of the produce of the same. l) To provide technical consultancy and other services to member societies and other agencies. m) To set up agricultural farms by purchasing, acquiring and taking on lease of land from Government Institution and private agency for research and development of agriculture. n) To set up institutes for providing training to the farmers and others in the modern and improved agricultural technology and other areas of Human Resource Development. o) To provide and arrange for the training of employees of the Cooperative Societies to promote and develop the sales of fertiliser and other agricultural production requisites in which IFFCO is interested. p) To take up such other activities which are incidental and conducive to agriculture and rural development. q) To promote subsidiary institutions for the purpose of furthering the objects of IFFCO. 2.3 VISION To augment the incremental incomes of farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilizers, maintain the environmental health and to make cooperative societies economically & democratically strong for professionalized services to the farming community to ensure an empowered rural India. 2.4 APPROACH To achieve our mission, IFFCO as a cooperative society, undertakes several activities covering a broad spectrum of areas to promote welfare of member cooperatives and farmers. The activities envisaged to be covered are exhaustively defined in IFFCO’s Bye-laws.
  • 17. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 17 2.5 COMMITMENT Our thirst for ever improving the services to farmers and member co-operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission. All that IFFCO cherishes in exchange is an everlasting smile on the face of Indian Farmer who forms the moving spirit behind this mission. 2.6 VISION 2015 In pursuit of its growth and development, IFFCO had embarked upon and successfully implemented its Corporate Plans namely ‘Mission 2005’ and ‘Vision 2010’which resulted into becoming one of the largest producer and marketer of Chemical Fertilizers by expansion of IFFCO’s existing Units, setting up Joint Venture Companies Overseas and Diversification into new Sectors. IFFCO has now visualized a comprehensive plan entitled ‘Vision-2015’ having the following objectives: Production of fertilizers through expansion of existing units. Setting up of additional fertilizer production facilities in India and Abroad through joint ventures. Diversification into other profitable sectors. Strengthening raw material sourcing through strategic joint ventures in India and abroad. Formulation of strategic alliances through IFFCO consortium. To stand as a Global leader in fertilizer production to cater to food security needs of the nation.
  • 18. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 18 Maximizing the synergies of the core business through downstream value additions and forward/backward integrations. Enhancing presence in international markets through strategic joint ventures and synergetic acquisitions. Diversification into other profitable business to maximize returns to our stakeholders. Promoting integrated Nutrient Management to improve efficiency of fertilizer use and promoting location specific research on efficient fertilizer practices. To help the cooperative societies become economically strong, professionally managed and to equip the farming community with advanced agricultural practices for improved productivity, to ensure an empowered rural India. Achieve fertilizer production/marketing target of 15 million tons per annum with and annual turnover of Rs. 30,000 Crore. 2.7 DIVERSIFICATION AND JOINT VENTURES IFFCO has made strategic investments in several joint ventures. Indian Potash Limited in India, Industries Chimiques du Senegal (ICS) in Senegal and Oman India Fertiliser Company (OMIFCO) in Oman are important fertiliser joint ventures. Indo Egyptian Fertiliser Company (IEFCO) in Egypt, Jordan India Fertiliser Company in Jordan are under implementation. As part of strategic diversification, IFFCO has entered into several key sectors. IFFCO-Tokio General Insurance Ltd (ITGI) is a foray into general insurance sector. Through ITGI, IFFCO has formulated new services of benefit to farmers.
  • 19. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 19 ‘Sankat Haran Bima Yojana’ provides free insurance cover to farmers along with each bag of IFFCO fertiliser purchased. To take the benefits of emerging concepts most of the agricultural commodity trading, IFFCO has purchased equity in National Commodity and mostly like the Derivatives Exchange (NCDEX) and National Collateral Management Services Limited (NCMSL). IFFCO Chattisgarh Power Limited (ICPL) which is the only implementation is yet another foray to move into core area of power. IFFCO Kisan Sanchar Ltd (IKSL) is a Telecom initiative for Rural India. IFFCO is developing the multi-product KISAN Special Economic Zone (IKSEZ) at Nellore in Andhra Pradesh - first of its kind with farmer's cooperatives as stakeholders. IFFCO is also behind several other companies with the sole intention of benefiting farmers. The distribution of IFFCO’s fertiliser is undertaken through over 39,800 co-operative societies. The entire activities of Distribution, Sales and Promotion are co-ordinated by Marketing Central Office (MKCO) at New Delhi assisted by the Marketing offices in the field. In addition, essential agro-inputs for crop production are made available to the farmers through a chain of 158 Farmers Service Centre (FSC). IFFCO has promoted several institutions and organizations even to work for the welfare of farmers, strengthening cooperative movement, improve Indian agriculture. Indian Farm Forestry Development Cooperative Ltd (IFFDC), the Cooperative Rural Development Trust (CORDET), IFFCO Foundation, Kisan Sewa Trust belong to this category. An ambitious project ‘ICT Initiatives for Farmers and Cooperatives’ is launched to promote e-culture in rural India. IFFCO obsessively nurtures its relations with farmers and undertakes a large number of agricultural extension activities for their benefit every year. In February 2010, it was announced that IFFCO had entered into a joint venture partnership with GrowMax Agri Corp, a subsidiary of Americas Petrogas Inc.
  • 20. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 20 2.8 IFFCO MANAGEMENT TEAM TABLE 2.8 Management Team of IFFCO Mr. Balvinder Singh Nakai| Chairman Mr. N. P. Patel | Vice-Chairman Dr. U.S. Awasthi | Managing Director & Chief Executive Officer Mr. Rakesh Kapur | Jt. Managing Director & Chief Financial Officer
  • 21. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 21 Mr. K. L. Singh | Director (Technical) Dr. G. N. Saxsena | Director (Coop. Development) Mr. R. P. Singh | Director (HR & Legal) Mr. Arabinda Roy | Marketing Director Mr. Manish Gupta | Director (Strategy & JV)
  • 22. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 22 Mr. Aditya Yadav | Director IFFCO, UP Cooperative Federation Ltd. Mr. Prem Chandra Munshi |Director IFFCO, Adarsh Krishak Sewa Swalambi Sah. Samiti Mr. Simachal Padhy | Director IFFCO, ODISHA, President, Sree Kapilaswar MPCS Ltd. Mr. Kanchi Rama Rao | Director IFFCO, Andhra Pradesh State Coop Mktg Fed. Ltd.
  • 23. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 23 2.9 IFFCO's Fertilizer Production Units  IFFCO, Kalol, Kasturi Nagar, Gandhi Nagar, (Gujarat), INDIA Fig 2.9.1 IFFCO, Kalol, Gujarat Production Capacities Ammonia- Urea Complex Commissioned in 1975 Ammonia - 0.36 million TPA Urea - 0.55 million TPA
  • 24. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 24  IFFCO, Kandla Unit, Post Box No.12, Gandhidham,Kandla (Kuchchh),Gujarat, INDIA Fig 2.9.2 IFFCO, Kandla, Gujarat Production Capacities NPK/DAP Complex Commissioned in 1975 NPK/DAP: 2.42 million MTPA In P205 terms: 0.910 million MTPA
  • 25. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 25  IFFCO, Phulpur, P.O. - Ghiyanagar, Allahabad, Uttar Pradesh, INDIA Fig 2.9.3 IFFCO, Phulpur, U.P Production capacities Ammonia- Urea Complex Commissioned In 1981 Ammonia - 0.824 million TPA Urea - 1.416 million TPA
  • 26. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 26  IFFCO, Aonla, P.O - IFFCO Township, Bareilly, Uttar Pradesh, INDIA Fig 2.9.4 IFFCO, Aonla, U.P Production Capacities Ammonia- Urea Complex Commissioned in 1988 Ammonia - 1.148 Million MTPA Urea - 2.000 Million MTPA
  • 27. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 27  IFFCO - Paradeep, Village-Musadia, PO: Paradeep, Dist. Jagatsinghpur, Odisha, INDIA Fig 2.9.5 IFFCO, Jagatsinghpur, Odisha Production Capacities DAP/NPK : 2 Million TPA Sulphuric Acid : 7000 TPD Phosphoric Acid : 2650 TPD
  • 28. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 28 2.10 PRODUCT PROFILE 2.10.1 IFFCO’s PRODUCTS 2.10.1.1 UREA IFFCO’s Urea is not merely a source of 46% of nutrient nitrogen for crops, but it is an integral part of millions of farmers in India. A bag of IFFCO’s urea is a constant source of confidence and is a trusted companion for Indian farmer. When farmers buy IFFCO's urea, they know that what they get is not just a product but a complete package of services, ably supported by a dedicated team of qualified personnel. More importantly, they are aware that it is their own urea, produced and supplied by a cooperative society owned by themselves.
  • 29. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 29 About Urea Urea is the most important nitrogenous fertiliser in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements. It has also numerous industrial uses notably for production of plastics. Table 2.10.1.1 Urea Specialization Specification of urea as per Fertiliser Control Order 1. Moisture % by weight, maximum 1.0 2. Total N % by weight (on dry basis) minimum 46.0 3. Biuret % by weight, maximum 1.5 4. Particle size 90% of the material shall pass through 2.8 mm IS sieve and not less than 80% by weight shall be retained on 1 mm IS sieve.
  • 30. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 30 If urea is applied to bare soil surface significant quantities of ammonia may be lost by volatilization because of its rapid hydrolysis to ammonium carbonate. The hydrolysis of urea can be altered by the use of several compound called urease inhibitors. These inhibitors inactivate the enzyme and thereby prevent the rapid hydrolysis of urea when it is added to soil. The rapid hydrolysis of urea in soils is also responsible for ammonia injury to seedlings if large quantities of this material placed with or too close to the seed. Proper placement of fertiliser urea with respect to seed can eliminate this difficulty. 2.10.1.2 NPK/DAP There are two categories of NPK. They come in different ratio of composition or grades:  10:26:26 (Contains three plant nutrients - 10% Nitrogen, 26% Phosphorous and 26% Potash).  12:32:16 (Contains three plant nutrients - 12% Nitrogen, 32% Phosphate, and 16% Potash)
  • 31. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 31 As far as Indian farmer is concerned, IFFCO's NPK/DAP is not just a source of crucial nutrients N, P, K for the crops, but is an integral part of his/her quest for nurturing mother earth. The bountiful crop that results from this care is an enough reason for the graceful bags of IFFCO NPK/DAP bags to be an integral part of the farmers' family. The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating the content of N, P, K proportion, are tailor made to supply the exact composition required for replenishment of the soil. The Indian farmer's confidence and trust stems from the fact that IFFCO's NPK/DAP are merely a part of a complete package of services, ably supported by a dedicated team of qualified personnel. More importantly, they are aware, IFFCO is a cooperative society owned by farmers cooperatives.
  • 32. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 32 About NPK/DAP Diammonium Phosphate It is the most popular phosphatic fertiliser because of its high analysis and good physical properties. The composition of pure salt of DAP is N-21.19% and P205 - 53.76%. Fertiliser grade DAP is 18:46:0. NPK Complex Grades NPK complex fertilizers produced at Kandla are DAP based grades. At present two grades Grade I - 10:26:26 and Grade II - 12:32:16 are produced. Granular NPK complexes are free flowing and do not pose any problem during handling and storage. However, exposure of material for long period to very high humidity may cause caking. Therefore, NPK complexes are bagged in quality tested HDPE bags to prevent ingress of moisture.
  • 33. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 33 Table 2.10.1.2 DAP/NPK Specifications Specifications of DAP/NPK complex as per Fertiliser Control Order DAP NPK- 10:26:26 NPK- 12:32:16 1. Moisture % by weight, maximum 1.5 1.0 1.0 2. Total N % by weight, minimum 18.0 10.0 12.0 3. Ammoniacal N % by weight, minimum 15.5 7.0 9.0 4. N in the form of urea, % by weight, maximum 2.5 3.0 3.0 5. Neutral ammonium citrate soluble phosphates (as P2O5) % by weight, minimum 46.0 26.0 32.0 6. Water soluble phosphates (as P2O5) % by weight, minimum 41.0 22.1 27.2 7. Water soluble potash (as K2O) % by weight, minimum -- 26.0 16.0 8. Particle size 90% of the material will be between 1 mm and 4 mm IS sieve and not more than 5% will be below 1 mm size. Table 2.10.1.2.1 Typical Composition of DAP/NPK Typical composition of DAP/NPK complex grades (by weight) DAP NPK- 10:26:26 NPK- 12:32:16 1. Moisture 0.90 0.88 0.85 2. Diammonium phosphate 87.53 50.04 62.68 3. Muriate of Potash -- 43.98 26.88 4. Urea 3.09 1.50 1.63 5. Filler (silica sand) 8.48 3.60 7.96
  • 34. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 34 Secondary/micro nutrients DAP NPK- 10:26:26 NPK- 12:32:16 1. Sulphur as S 0.48 0.88 0.66 2. Iron as Fe 0.31 0.40 0.25 3. Aluminium as AI 0.32 0.52 0.18 4. Calcium as Ca 0.12 0.11 0.09 5. Magnesium as Mg 0.26 0.34 0.31 6. Zinc as Zn (ppm) 103 98 88 7. Copper as Cu 55 32 27 Atomic weight C=12, H=1, O=16, N=14, P=31, K=39, Ca=40, S=32, C1=35. Conversion factors P to P205 = 2.29; P205 to P = 0.44 K to K20 = 1.2; K20 to K= 0.83
  • 35. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 35 2.10.1.3 NP Table 2.10.1.3 Specifications of NP Ammonium Phosphate Sulphate (20-20-0-13) 1. Moisture % by weight, maximum 1.0 2. Total Nitrogen, per cent by weight, minimum 20.0 3. Ammoniacal Nitrogen, per cent by weight, minimum 18.0 4. Nitrogen in the form of urea, per cent by weight, maximum 2.0 5. Neutral Ammonium Citrate soluble Phosphates(as P205), per cent by weight, minimum 20.0 6. Water soluble phosphates (as P2O5), per cent by weight, minimum 17.0
  • 36. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 36 7. Particle size Not less than 90 per cent of the material shall pass through 4 mm IS sieve and shall be retained on 1 mm IS sieve. Not more than 5 per cent shall be below 1 mm IS sieve. 8. Sulphur (as S), per cent by weight minimum 13.0 2.10.1.4 BIO-FERTILIZERS A biofertiliser unit was established at Cooperative Rural Development Trust, Phulpur (Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with an annual capacity of 75 MT and 165 MT respectively of different cultures such as Rhizobium, Azotobacter, PSM, Azospirillium and Acetobacter. 2.10.1.4.1 Phosphate Solubilising Micro Organism Several soil bacteria and fungi possess the ability to bring insoluble phosphates into soluble forms by secreting organic acids. They can be applied to and recommended for all crops.
  • 37. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 37 2.10.1.4.2 Rhizobium It is the most important nitrogen fixing organism. It live symbiotically in the root nodules of leguminous plants and supply nitrogen to the plant through nitrogen fixation. Besides, supplying nitrogen to the crop, nitrogen fixed by legume - Rhizobia association would also leave residual nitrogen for the succeeding crops. The beneficiary crops are Groundnut, Soybean, Red-gram, Green-gram, Black-gram, Lentil, Cow pea, Bengal-gram and Fodder legumes. 2.10.1.4.3 Azotobacter It is non-symbiotic nitrogen fixing bacteria recommended for non-leguminous crops like Paddy, Wheat, Millets, Cotton, Tomato, Cabbage, Mustard, Safflower and Sunflower. The Azotobacter performs well if the soil organic matter content is high. 2.10.1.4.4 Acetobacter It is a symbiotic bacteria capable of fixing atmospheric nitrogen by living within the sugar plant. They are found in all parts of plant body. It is suitable for sugarcane cultivation.
  • 38. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 38 2.10.1.4.5 Azospirillium It is an associative microaerophilic nitrogen fixer is commonly found in association with the roots of cereals and forage grasses. The beneficiary crop include Sugarcane, Vegetables, and Maize, Pearl millet, Rice, Wheat, Fodders and Oil seeds. 2.10.1.5 WATER SOLUBLE FERTILISER 2.10.1.5.1 Urea Phosphate 17:44:0 Moisture per cent by weight, maximum 0.5 Total Nitrogen, percent by weight, minimum 17.0 Water soluble phosphate (as P2O5), per cent by weight minimum 44.0 Matter insoluble in water, per cent by weight, maximum 0.5
  • 39. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 39 2.10.1.5.2 NPK 19:19:19 Total Nitrogen, % by wt. minimum 19.0 Nitrate Nitrogen, % by wt. maximum 4.0 Ammoniacal Nitrogen, % by wt. minimum 4.5 Urea Nitrogen, % by wt. maximum 10.5 Water soluble Phosphate (as P2O5), % by wt. minimum 19.0 Water soluble Potash (as K2O), % by wt. minimum 19.0 Sodium as NaCl, per cent by weight on dry basis, maximum 0.5 Moisture, per cent by weight, maximum 0.5 2.10.1.5.3 SULPHUR BENTONITE Sulphur 90 % (Granular) - As per FCO specifications: Moisture per cent by weight, maximum 0.5 Total Sulphur (as S) per cent by weight, minimum 90.0 Particle size - Not less than 90 per cent of the material shall pass through 4.0 mm IS sieve and be retained on 1 mm IS sieve and not more than 5 % shall be below 1 mm IS sieve
  • 40. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 40 2.11 COMPETITORS IFFCO’S COMPETITORS IN THE STATE AND THEIR PRODUCTS: PARADEEP PHOSPHATE LTD: (PPL) Paradeep Phosphates Limited (PPL) is a primer fertilizer industry in the state of Odisha. The company, which is a part of the KK. Birla Group and the OCP Group of Morocco, is a second largest producer of DAP, with its corporate office at Bhubaneswar and its Plant at the Port town of Paradeep on the shores of the Bay of Bengal, PPL has been in the fertilizer business for the last 19 years. PPL manufactures and markets various grades of fertilizers. These fertilizers are marketed under the brand name “NAVRATNA”. Products Manufactured by PPL: Di-Ammonium Phosphate (DAP- 18:46:01) • Contains 18% Nitrogen and 46% Phosphate.
  • 41. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 41 NPK-10:26:26 • Contains three plant nutrients (10% Nitrogen, 26% Phosphate and 26% Potash). NPK- 12:32:16 • Contains three plant nutrients (12% Nitrogen, 32% Phosphate and 16% Potash) NPK - 20:20:00:13 (Ammonium Phosphate Sulphate) • Contains 20% Nitrogen, 20% Phosphate and 13% Sulphur
  • 42. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 42 NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED The flagship company of the Nagarjuna Group, Nagarjuna Fertilizers and Chemicals Limited is a leading manufacturer and supplier of plant nutrients in India. Commencing operations in 1985, today its asset base is around Rs. 21 Billion. It has the distinction of being the single largest private sector investment in Southern India. An ISO 9001:2000 certified company; its operational profits are one of the highest in the industry. INDIA POTASH LIMITED: (IPL) IPL has no manufacturing unit in and outside the country. The organization imports the fertilizer and markets the same. The main product marketed in the country by IPL is Muriate of Potash (Potassic fertilizer). COROMANDEL INTERNATIONAL LIMITED: (CIL) CIL has a manufacturing unit at Vizag (AP) and produce different grades of Phosphatic fertilizer. The organization also import fertilizers and market the same along with its indigenous products in the country.
  • 43. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 43 2.12 MARKET SHARE Cooperative major Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has increased its stake in National Commodity & Derivatives Exchange Ltd (NCDEX) by buying a 1.12 per cent stake from Renuka Sugars for about Rs. 10 crore. IFFCO’s stake in commodity exchange NCDEX has now reached 10 per cent. Last week, leading sugar firm Shree Renuka Sugars Ltd sold a 7.5 per cent stake in NCDEX to investors, including the National Stock Exchange NSE) and Indian Farmers Fertiliser Cooperative Ltd (IFFCO), for Rs. 66.54 crore. “We have bought 1.12 per cent stake in NCDEX at Rs. 175 per share,” a senior IFFCO official said. Of the stake sold by the sugar major, 5 per cent was acquired by the NSE, an original promoter of NCDEX. Renuka Sugars sold a 1.12 per cent stake to IFFCO. 2.13 MILESTONES/AWARDS ACHIEVED  Dr. U S Awasthi Conferred with "Life Time Achievement Excellence Award" in Fertiliser Sector  IFFCO grabbed another position in IT & Systems, Placed in Top 10 CIOs of India  IFFCO wins FAI Award for ICT in Agricutlure  IFFCO bags the best stall award at Pusa Krishi Vigyan Mela  FAI Awards to IFFCO  IFFCO won the first prize for its publication ‘Golden Harvest’ from Public Relations Society of India.  Skoch Digital Inclusion Award 2012 bagged by IFFCO(18-09-2012)
  • 44. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 44  IT in IFFCO acknowledged; Mr. S C Mittal, Sr ED(MS&IT) & Group CTO awarded in CIO100-(07-09-2012)  IFFCO Awarded for IT Security: Placed in Top 100 CISO Award by ‘InfoSecurity’ Magazine and iViZ Security-(15-06-2012)  IFFCO added another IT accolade in its belt: Won 2012 Computer World Honors Laureate Award-(04-06-2012)  IFFCO Shines at FAI Annual Awards -2011  “IFFCO News” bagged a prize in “Best Cooperative Journal Award Competition - 2011” organized by NCUI.(14-11-2011)  IFFCO Wins the 6th Annual CIO100 Awards 2011 & Hall Of Fame Award (13- 10-2011)  IFFDC wins The Times of India Social Impact Award (20-09-2011)  SKOCH Digital Inclusion Award-2011(01-09-2011)  Aonla wins CII Environmental Best Practices Award-2011(28-01-2011)  Safety Innovation Award-2010 (28-12-2010)  IFFCO Aonla Unit has been awarded the 'EDGE' winner prize (30-09-2010)  Genentech Gold Award for Training Excellence (17-09-2010)  ICWAI Award for Excellence in Cost Management - 2009 for IFFCO (16-08- 2010)  IFFCO Shines at Public Relation Society of India, Grabbed 2 prestigious awards  IFFCO Aonla & Paradeep Unit have won the prestigious FAI awards on (03- 12-2009)  IFFCO Aonla Wins "Gold Award“- 10th Annual Genentech Environment Excellence Award 2009  IFFCO bagged First ever dotCoop Global Award for Cooperative Excellence  IBM Awards First Prize to IFFCO for Innovation  IFFCO Phulpur Unit-I bagged "First Prize" by FAI.
  • 45. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 45  CIO 100 & IT Awards  Microsoft Felicitates IFFCO  National Energy Conservation 2008 - 1st Award Conferred on Phulpur Unit  Gujarat State Safety Award: 2007 for Kalol Unit  IFFCO bags three FAI Awards  IFFCO bags Energy conservation award  IFFCO Wins PRSI Award  Phulpur Unit Wins National Energy Conservation Award-2006  Aonla Unit wins National Energy Conservation Award-2006  IFFCO's Corporate Film Wins NCUI's Award.  IFFCO Kalol Wins "National Energy Conservation Award: 2006"  Kandla Unit wins FAI Prize  IFFCO Aonla Wins National Safety Award  Kandla Unit Wins - Golden Peacock Environment Management Award  Phulpur Unit bags National Energy Award from Honourable President of India  Best Managed Work Force Award for IFFCO  IFFCO Aonla Unit Wins National Safety Council of India Safety Award-2004 2.14 CORPORATE SOCIAL RESPONSIBILITY IFFCO has been pursuing its Corporate Social Responsibilities via the business of fertilizers through the large network of farmers’ Cooperative Societies. It is a unique Cooperative Society where shareholders are the sole consumers of its entire production. So the benefit of marketing are passed on to them in different forms. Some of the examples of Corporate Social Responsibility activity being undertaken by IFFCO are as under:
  • 46. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 46  REHABILITATION OF EARTHQUAKE VICTIMS Consequent upon the massive earthquake in Gujarat in January, 2001, IFFCO created? Kisan Sewa Fund (KSF)? to undertake Rehabilitation of the victims & Reconstruction of the damaged villages and later on to undertake relief activities in the event of natural calamities like earthquakes, droughts, cyclones, fires, floods etc. with an initial corpus fund of Rs. 100 million which swell to Rs 218 million through contribution from likeminded organizations. In partnership with the Government of Gujarat, KSF has undertaken work in the affected villages by rebuilding totally destroyed houses/huts and repair of partially damaged houses. In addition, construction of Public Infrastructure Facilities such as Primary Schools, Community Centers, Water Tanks, Water Supply and Drainage lines, Storm Water Drains and Roads have also been taken up. Till date seven (7) villages namely Modsar, Padana, Amarsar, Satapar, Kukma, Nanichirai and Varshamedi? in Kutch District have been adopted and an amount of Rs. 190 million have been committed out of which Rs. 130 million has been spent so far. The status of projects undertaken by KSF for Rehabilitation of earthquake affected villages are as under: 1) Modsar : The rehabilitation of Modsar village which includes construction of 173 houses and various infrastructure facilities such as Primary School, Anganwadi, Samajwadi, Panchayat Ghar, Water Supply & Drainage, WBM Road, Water trough, Snan Ghat, Bus Stand etc. at a total cost of Rs. 37.50 million have been completed and are allotted. This reconstructed village has been dedicated to the villagers on 2nd March, 2002. 2) Amarsar : The rehabilitation of Amarsar village which includes construction of 32 houses and infrastructure facilities such as Anganwadi, Samajwadi, Panchayat Ghar, Water Tank, Gaushala at a total cost of Rs. 10.46 million has
  • 47. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 47 been completed. This reconstructed village has been dedicated to the villagers on 11th June, 2002. 3) Padana : The rehabilitation of Padana village which includes construction of infrastructure facilities such as Primary School, Anganwadi, Samajwadi, Panchayat Ghar, Water Supply & Drainage, WBM Road has been at a total cost of Rs. 5.8 million completed and owner driven repair/ reconstruction of 244 houses out of 330 houses at an estimated cost of Rs. 17.1 million has been completed. This reconstructed village has been dedicated to the villagers on 11th June, 2002. 4) Satapar : The rehabilitation of Satapar village which includes construction of 231 houses and various infrastructure facilities such as School, Anganwadi, Samajwadis, Panchayat Ghar, Overhead & Underground Water Tank & WBM Road has been completed. Housing assistance is also being provided to 122 beneficiaries for reconstruction of their houses by themselves. The total cost of Rehabilitation of this village is estimated at Rs. 52.86 million. This reconstructed village has been dedicated to the villagers on 6th May, 2002 by Honourable Union Minister for Chemicals and Fertilizers, Shri S.S. Dhindsa. 5) Kukma: The rehabilitation of Kukma village which includes construction of infrastructure facilities such as Samajwadi, Aanganwadi, Community Hall, Girls Hostel, School, Gaushala, Maternity Hall, Bus Stand etc. at an estimated cost of Rs. 26.2 million is in progress. 6) Nanichrai : The rehabilitation of Nanichrai village which includes construction of 216 houses and various infrastructure facilities such as RCC Water Tank, Water supply and Drinage system, Storm Water Drainage system and WBM Road at an estimated cost of Rs. 35.82 million is in progress. 7) Vershamedi: The rehabilitation of Vershamedi village which includes construction of 402 houses and various infrastructure facilities such as School, Anganwadi, Samajwadis, Panchayat Ghar, Gaushala and Bus Stand at an estimated cost of Rs. 38.39 million is in progress. Other facilities such as Construction of Panchayat Ghars in 24 villages at an estimated cost of Rs. 5.64
  • 48. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 48 million, Repair/Reconstruction of Check Dams in Joginar, Pantiya, Lakthirgarh, Ratnal and Hirapar villages at Rs. 2.82 million, construction of Primary School at village Khavda and construction of Community Hall at Pantia village is in progress.To strengthen cooperative movement financial assistance of Rs. 19.20 million is also being provided to 66 Cooperative Societies to reconstruct their office-cum-godown which was damaged during earthquake.The quantum of progress achieved by KSF is despite constraints such as large amount of Debris removal, heavy rains during the monsoon, various formalities required under the Village Partnership Programme framed by the Gujarat State Disaster Management Authority (GSDMA), persuasion required for the villagers for agreeing to relocation, remote location of the villages etc.  PROMOTION OF FARM FORESTRY & RECLAMATION OF WASTE LAND IFFCO promoted Indian Farm Forestry Cooperative Ltd. (IFFDC) in 1984 to promote farm forestry, reclamation of waste land and to establish sustainable profit oriented village cooperatives. Phase-I project was launched in 1986 at a total cost of Rs. 70 million which was totally funded by IFFCO. Under this scheme, 4609 hectare waste land was transformed into green forest. Phase-II was launched in 1995 in partnership with Indian-Canada Environment Facilities at Rs. 350 million funding. Under this scheme, plantation of 20,379 hectare land was carried out. Phase-III was launched in 1999 at an estimated cost of Rs. 470 million to implement Western India Rain Fed Farming Project which was funded by Dep’t. Of International Development (UK Govt.), with emphasis to enhance the livelihood of 1, 50,000 rural community in rain fed areas of Rajasthan & Madhya Pradesh. Under this scheme 75 villages were adopted for appropriate farming system and complementary income generating ways such as farm forestry, livestock, water resource development etc.
  • 49. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 49  FARMERS TRAINING ACTIVITIES IFFCO formed Cooperative Rural Development Trust (CORDET) which impart training to farmers in addition to various services such as hybrid seeds, soil testing, bio- fertilizers, plant saplings etc. IFFCO contributes around Rs.10 million annually to CORDET. Under this scheme during 2001-02, 7624 farmers were imparted training, 124 MT of seed produced/distributed, 59,670 nos. of soil sample tested, 32,569 fruits & vegetable saplings were distributed and 145 MT by bio-fertilizers produced and distributed.  INTEGRATED RURAL DEVELOPMENT PROGRAMS Under this scheme all the four factories of IFFCO undertake construction of infrastructure such as roads, schools, and drinking water facilities etc. in adopted villages which fall within the radius of 15 km of the factory at an annual expenditure of Rs. 1.5 million each.  FARMERS SERVICE CENTERS IFFCO has established 167 Farmers Service Centers, where farmer can get fertilisers, pesticides, seed, micro nutrient etc., at one place alongwith technical know-how for its application. With the help of soil testing vans the soil of different locations are analysed and farmers are advised to use proper fertilisers based on the test result.  FREE INSURANCE TO CUSTOMER (FARMERS) Free insurance cover for accident upto Rs. 100,000/- per farmer is provided against purchase of fertiliser @ Rs. 4000 for every fertiliser bag of 50 kg purchased.
  • 50. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 50  AGRICULTURE INFORMATION SYSTEM IFFCO is developing Geographical Information System (GIS) in collaboration with Indian Space Research Organisation (ISRO) to provide farm related information such as weather forecast, soil characteristics, appropriate cropping pattern through Agriculture Portal and IT Kiosks Network of the Cooperative Societies through ISRO- Satellite alongwith distribution of IFFCO fertiliser.  CONCERN FOR ENVIRONMENT & ECOLOGY IFFCO?s all the four operating Plants are certified for ISO 14001 with main emphasis on recycling of waste water after treatment and tree plantation for Green Belt development.  CONCERN FOR EMPLOYEES IFFCO is one of the best paymasters in India and takes care of its employee including medical reimbursement for self and dependent, Housing, Transportation, Schools, Club etc. in addition to various social and insurance benefits, in order to provide conducive working atmosphere
  • 51. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 51 2.15 SWOT ANALYSIS IFFCO as a service oriented organization has gain a lot of popularity, trust, production, sales and large amount of market share also still it continuously trying to be more potent and have more popularity and to do that it must know what are the Strength, Weakness, Opportunities and Threats. STRENGH OF IFFCO  An old reputed brand  Associated with Cooperatives.  Some products have huge demand.  Vast coverage area.  Highest share in the market.  The chance of exploiting the rural farmers is only available through Govt. Agencies or through Co-operatives only. WEAKNESS OF IFFCO  As it is a Govt, organization so the frequency or randomness of prompt action is slightly low as compared to the private competitors.  The promotional activities are very low in some areas.  Sometimes the timely availability not occurs.  The color of the package and the aesthetic appeal is not attractive than other private market competitors like NFCL and PPL.  The hook problem.
  • 52. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 52 OPPORTUNITIES TO IFFCO  For fertilizer, the demand is always as it comes under the essential commodities. So IFFCO has a great opportunity to maximize its sales volume. THREATS TO IFFCO  The main threat to IFFCO is its competitor PPL (Navaratna) which has maximum market share in Jagatsinghpur district and attract the people through its promotions and sales force.
  • 53. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 53 2.16 IFFCO’s DISTRIBUTION CHANNEL The marketing of IFFCO products - NPK, NP, DAP, Urea - is channelized through 39,456 member cooperative societies, marketing federation and 158 farmer service centers spread over 30 states/union territories across the country. 2.16.1 Marketing Channels Distribution of fertilizer mainly through the cooperative system. State level apex cooperative marketing federation acts as wholesaler. Direct supplies to Societies in some states. IFFCO-NCDC Cooperative Societies. Small quantities to Agro Industries Cooperation etc.
  • 54. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 54 2.16.2 Distribution and Warehousing Distribution of Urea and interstate movement is under Govt, controlled and is regulated under the Essential Commodity Act (ECA) 1956. Under ECA, supply plan for Urea is formulate by Govt, in consultation with the state department of Agriculture and fertilizer Industry. IFFCO Urea is moved from factory to field warehouse by the mode of transport such as ROAD and RAIL. Movement through Rail is resorted to on a need basis to distant locations at the shortest time. Consumption of Urea is seasonal thereby rendering transportation, storage and distribution is very important. Transportation By Rail — 88% By Road — 12%. Warehousing o Federation and cooperative Godowns o Central Warehousing Corporation (CWC) o State Warehousing Corporation (SWC). o PACS Godown. o OAIC Ltd Godowns.
  • 55. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 55 2.16.3 Distribution Channel Process: 2.16.4 CHANNEL The organization of the ways in which companies reach and satisfy their customers. Channel involves more than just distribution and has been described as management of how and where a product is used and how the customer and the product interact. Channel is a way of distributing the fertilizer from one place to another i.e. from production point to different ware houses which is then distributed to the consumers/farmers. 2.16.4.1 CHANNEL MANAGEMENT Channel management covers processes for identifying key customers, communicating with them, add continuing to create the value after first contact. Channel management, yet another sales and marketing system that is thrown around like everyone knows what it means. But few companies really understand channel management in a way that really helps them. Warehouse IFFCO Production Unit State MKTG Office Area Office SocietiesFarmer
  • 56. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 56 Channel management, as a process by which a company creates formalized programs for selling and serving customers within a specific channel and can really impact your business and in a positive way. The channel management program that includes: Goals: Define the specific goals as a whole as individual accounts and remember to consider your goals for both acquisition and retention. Policies: Construct well defined policies for administering the accounts within this channel. Be sure to keep the unique characteristics of each segment in mind when defining policies for account set up, order management, order management, product management etc. Products: Identify which products in your offering are most suited for each segment and create appropriate messaging. Also determine where you are up sell opportunities be positioned. Sales/Marketing Programs: Design support programs for your channel that meet their needs, not what your idea of their needs are. To do this you should start by asking your customers within this segment. 2.16.4.2 Need and Benefit of Channel Management  Benefits of working with channel partners, channel management helps to regulate the action of its partners.  Reduced cost channel programs.  Increase efficiency.  Relationship with your partners is very much closer and you have a better understanding power of how each of you works with another.  Channel management is able to do its part to keep everything organized and in working order.  It works to improve business for each partner
  • 57. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 57 2.16.4.3 The Channel mostly followed by the organization: MANUFACTURER APEX Co-operative Societies District & Block / GP Level Coop. Societies FARMERS
  • 58. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 58 2.16.4.4 ROAD MAP OF JAGATSINGHPUR DISTRICT Fig 2.16.4.4 Road Map of Jagatsinghpur District
  • 59. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 59 2.17 Distribution Channel of Jagatsinghpur District OSCMF Balikuda Raghunathpur OAIC 15 DEALERS SHC/MPC A. Subhalaxmi. B. Maa Sarala. C. Sri Aurovind. D. Gorakhnath. SCS A. Siddheswar B. Silo
  • 60. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 60 (By Road Movement from Cuttack rake Point and Paradeep Plant to Jagatsinghpur District) 2.18 Channel Management by IFFCO IFFCO is the biggest co-operative organization which distributes its fertilizer throughout the country and outside the country. The sales of IFFCO fertilizer are done through cooperatives i.e. State Level Cooperative Marketing Federation, District and village level societies. Village level societies are also called as Primary Agricultural credit Societies (PACS) are the backbone of the cooperative system having direct access to the farmers for supply of fertilizer in village and remote areas. In business of fertilizer, hiring their warehousing facilities and also gives preference to them for handling and transportation of IFFCO fertilizer and improved farmer’s access to DISTRIBUTION OF FERTILIZER CUTTACK RAKE POINT/ PARADEEP PLANT OSCMF OAIC SHC/MPC SCS
  • 61. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 61 fertilizers. Majority are transported by Rail (85%) and remaining 15% by Road. Sometimes when there is any critical problem arises in Railway, fertilizers are transported through Sea route (e.g. from Paradeep Port to Chennai Port). 2.18.1 Steps Taken by IFFCO to strengthen the Co-operatives:  Selection of Co-operative Societies under various schemes of IFFCO.  The societies act as franchise to undertake various jobs like rake handling, transportation, warehousing etc. and sales of IFFCO products through co- operatives.  Render benefits to the farmers through “Sankat Haran Bima Yojana”.  20% of dividend is paid to the members societies for share contribution to IFFCO.  Financial assistance for construction of Godown under co-operative development programme.  Implementation of IFFCO Kisan Sanchar Ltd. (IK.SL), NCDEX and NCMSL schemes through co-operative societies. 2.18.2 Promotional Activities done by IFFCO Need of Brand Promotion Though the rural markets offer big attraction to the marketers, one of the most important questions frequently asked is “How do we reach the large rural population through different media and methods”? Television Television has made a great impact and large audience has been exposed to this medium. Regional TV channels have become very popular especially in rural areas. In Odisha TV and ETV are more popular channels. IFFCO is frequently using these channels.
  • 62. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 62 Radio Radio reaches large population in rural areas at relatively low cost. IFFCO has been using this medium to aware about its product to the rural farmers through advertisement during regional news and agricultural news. Outdoor Advertisement This form of media includes signboards, hoarding, tree boards, Bus boards; dealer boards, product display board etc. are effective in rural areas. Wall Painting/Road Side Sign Board (RSSB) It is an effective and economical medium for communication in rural areas. It creates a large impact on the mind of farmers as this is a stable form which comes in front of his eyes repeatedly and works as reminder. IFFCO has engaged in this media for its advertisement. Field Demonstration Field demonstration is one of the most effective methods to show the superiority of company’s products to the customers. A progressive farmer who is an opinion leader is selected and the demonstration is conducted in his field in the presence of group of farmers in the village. The farmers observe the results in the field and tries in their own field. IFFCO has seriously engaged in this practice.
  • 63. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 63 2.18.3 Other Promotional Activities done by IFFCO itself. IFFCO has always believed in providing services to their member cooperatives and farmers by organizing various promotional and educational programs such as  Farmers Meeting---direct face to face interaction.  Bio-fertilizer Campaign---use of biological organ.  Seed Treatment Campaign.  Plant Protection Campaign.  Soil Rejuvenation.  Crop Diversification.  Renewable of alternate energy.  Field Day-On Standing Crop of demonstrated field.  Crop Seminar.  Demonstration-two plot, special project on new technology.  Salesmanship Training.  Agricultural and social campaign.  Soil testing methodology---Mobile Soil Testing Van (MSTV).  Construction of storage cum community centres (PACS level).  Publicity through electronic and print media, v'' Information Technology (Kriosk).  Social Scheme- Medical Campaign, Veterinary Campaign, Tree Plantation, Mega Health Camp.  Enrichment of organic manure—Phospho-Sulpho-Nitro-Compost (PSNC).
  • 64. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 64 CHAPTER – 3 DESIGN OF DISSERTATION 3.1 REVIEW OF LITERATURE Various research studies were conducted on the Topic "Awareness and Perception of the Brand" which are given below:  MARKETING MANAGEMENT ( A south Asian Perspective), 13TH Edition By — Philip Kotler, Kelvin Keller, Abraham Koshy and Mithileswar Jha The American Marketing Association defines a brand as "a Name, term, sign, symbol or design or a combination of them, intended to identify goods or services of one seller or a group of seller and to differentiate them from those of competitor". A brand is thus a product or services whose dimensions differentiate it in some way from other products or services designed to satisfy the same need. These differences may be functional, rational or tangible, related to product performance of the brand. They may also be more symbolic or intangible related to what the brand represents. According to Kotler, "Marketing Channels are set of inter dependent organizations involved in the process of making a product or services available for use or consumption. They are set of pathways a product or services follows after production, culminating in purchase and use by the final end user".  Dr. Awasthi U.S has focused in his article IFFCO marketing setup (2010) that "IFFCO supplies its fertilizer material mostly through cooperative channel. However, the co-operative societies have no obligation to purchase from IFFCO. This necessitates a competitive approach to nurture brand loyalty. The marketing strategy of IFFCO s designed to ensure timely availability of
  • 65. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 65 reasonably priced quality products right at the doorstep of the farmers through the nationwide co-operative network. The fertiliser is distributed through Apex Co-operative Marketing Federations in many states of the country. Direct supplies to the village level co-operative societies are also undertaken in some states. Small quantities are provided to other institutional agencies like Agro - Industries Corporations in some states. IFFCO-NCDC societies and IFFC0's Farmers Service Centres (FSCs) are also used as outlets for retail sale of fertilisers. The marketing field setup of IFFCO comprises 5 Zonal Offices, 14 State offices, 2 State-cum-Area Offices and 62 Area Offices. Each Area Office covers 4 to 6 districts. There are 8 to 10 Field Officers in each Area Office. They are posted in district and taluka level towns. The field officers work with the farmers and facilitate the transfer of modern agricultural technology. The total marketing field force of IFFCO is about 500 persons who are basically agriculture graduates. Besides performing Marketing functions, they also carry out extension education programmes for the benefit of the farmers".  SUNIL LULLA’S VIEWS on BUILDING BRAND IDENTITIES “Brand reputation bottom line, because it impacts what the consumer thinks of the brand” One way to define a brand identity is how Warren Buffet Reputation (he invests in reputed companies like Coca-Cola, impacts bottom Microsoft, McDonalds, and Gillette among others) defined line, because it is in a letter to his employees in which he wrote, “If you impacts what lose dollars for the firm, I will be understanding. If you the consumer lose reputation for the firm, I will be ruthless.” If one was thinks of the to look at the above definition from a brand reputation brand... perspective and think of names like Infosys, TATA, Reliance, Microsoft, Linux, LG, Coke, O & M, J & J, Lakme, Sony, one would realize that these names are like brands for these corporates and their reputation is important to them. Even the reputations of brand names like Airtel, Crocin, Horlicks, Tide, Santro, and Lifebuoy are exceedingly important for the respective corporations who own these brands. When it comes to managing brand
  • 66. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 66 identities the starting points can be to look at how can you protect, preserve, grow, enrich, manage and build your brand reputation by using PR.  Mr. Arora Deepak has highlighted in his article name “IFFCO's sales cross US $ 2 billion; makes core projects foray” that NEW DELHI, May 18: After the grandiose journey in the fertilizer arena, the world's largest fertilizer cooperative IFFCO has decided to make a big foray into the infrastructure sector. This has been possible due to almost 35 per cent percent growth in sales at Rs 9,943 crore and healthy Rs 341 crore net profits during last fiscal, said Dr U S Awasthi, company's Managing Director.' With its financial muscle with US $ 2 billion plus sales and technological competence in fertiliser projects, Dr Awasthi said IFFCO-led trans-national consortium has been prequalified, based on a global tender, to develop a 22 km long bridge over sea between Mumbai and Navi Mumbai. This Rs 2,600 crore Mumbai Trans Harbour Link Project (MTHL) would be across the deep sea connecting Sewri in Mumbai and Nhava in Nhavi Mumbai. The consortium includes Italian Thai Development Company Ltd (ITD) of Thailand, MAEDA Corporation of Japan and ITD Cementation India Ltd. The project to be developed on Build Operate and Transfer (BOT) basis will be the first such venture in which IFFCO decided to take on stiff competition from six global consortia. The contracts are likely to be awarded to the successful bidder in 2007-08. The Indian Farmers Fertiliser Cooperative Ltd (IFFCO) Chairman, Mr. S.K. Jakhar, disclosed that in its bid to ride the infrastructure boom, IFFCO has also entered into a joint venture agreement with Chattisgarh State Electricity Board (CSEB) to develop a 1000 MW coal-fired power project at Prem Nagar in the State. The 74: 26 Joint Venture christened as IFFCO Chattisgarh Power Ltd (ICPL) has been incorporated to take up the project shortly. With 74 percent stake, the IFFCO will also
  • 67. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 67 have the management control through five of its nominees on the board. Two members have been inducted from the CESB. Mr. S.K. Jakhar is also the Chairman of the new joint venture while CSEB Chairman is the vice-chairperson. IFFCO and its associates will put in Rs 1155 crore towards the equity in this mega power project while the CSEB would pitch in with Rs 405 crore. The debt equity ratio for the Rs 5,200 crore venture has been set 70: 30. IFFCO has nominated its Executive Director Mr M.M.Raheja as the Chief Executive of this power project. The project will source coal from the Tara coal block. The projected levelised tariff is Rs 2.16 per unit. The financial closure for the project would be achieved in 2006- 2007. CSEB has agreed to buy 90 percent of power generated from this project while the JV will have the flexibility to trade the rest 10 percent amongst the western states. Dr Awasthi, informed that while diversifying into infrastructure, IFFCO has continued its campaign to achieve backward and forward linkages in the fertilizers sector. As part of this drive, it has floated the Indo Egyptian Fertiliser Co, a joint venture with Egyptian Government's El Nasr Mining Co. The 76:24 joint venture will set up a plant to produce around 450,000 tonnes of phosphoric acid (P205) annually. IFFCO will enter into a 100 percent buyback arrangement for the phosphoric acid produced from the JV. Dr. Awasthi said that Mr. S K Jakhar is the Chairman of 1EFC. Washington based International Finance Corporation (IFC) has been retained as the financial advisor to the joint venture. A four-member board of directors has been constituted for the Cairo-based Joint Venture. IFFCO nominee C.P.Srivastava has taken over as the Chief Executive of the company in which US $ 325 million investment would be made. Shareholders agreement has already been signed for the JV. Dr. Awasthi informed that IFFCO has commitment to reduce the subsidy since it has taken all important steps to switch over from Naphtha to Gas. IFFCO's Phulpur Unit, that has a capacity to produce 14.16 lakh MT of Urea per annum, was operating on
  • 68. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 68 Naphtha as a feed stock. This Unit has now switched over from Naphtha to Gas which shall result in reduction in Govt. Subsidy Bill by around Rs. 1,000 crore per year. Mr. Jakhar expressed pleasure at the commencement of production at the recently acquired Paradeep Unit after revamp. The plant is running continuously and the load shall be increased gradually. IFFCO's sales turnover crosses US $ two billion, marks an around 35 per cent jump over previous financial year's Rs 7397 crore. The surge in sales turnover is due to highest sale of fertilizers at 81.95 lakh tonnes. Fertiliser production touched 64.35 lakh tonnes. This is against 61.54 lakh tonnes in 2004-05. Net profit increased to Rs 341 crore from Rs. 298 crore in the previous year, a jump of around 15 per cent. After takeover from Oswals, operations at Paradeep plant revamped. The unit would produce 15.75 lakh tonnes during 2006-07, added Dr Awasthi.  Mr. Gupta. Lehmann and Stuart (2004) find that “customer acquisition and retention expenses have a significant, positive effect on firm value. Other studies report a positive relationship between a firm’s CRM technology investment and CRM performance.”  Reinartz, Krafft and Hoyer 2004 find that “extant research offers few insights on the strategic choices that are associated with the effective deployment of CRM. This remiss because strategic conduct influences the effect of customer satisfaction on firm value.”
  • 69. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 69 3.2 NEED FOR THE STUDY Brand Equity describes about the value of having the brand name IFFCO, in terms of price and quality. Brand expansion to target customer market helps to increase and leverage brand equity for the particular brand. Brand management is a communication function in marketing that includes analysis and planning on how that brand is positioned in the market, which target public the brand is targeted at, and maintaining a desired reputation of the brand. Developing a good relationship with target publics is essential for brand management. Brand Management is used for increasing the long term brand equity. Awareness and perception about the particular brand so as to reach out to maximum customers. 3.3 OBJECTIVES OF THE STUDY:  To study branding image of IFFCO in the prescribed areas.  To find out the most effective tool of communication in reaching the farmers.  To find out the satisfaction level of farmers in the district of Jagatsinghpur. 3.4 SCOPE OF THE STUDY:  There are beneficiaries of IFFCO products who can be available for disseminating information.  The study will provide chance to understand farmers problems.  The study will expose the difficulties in brand and channel development.  Farmer's feedback will be useful for further development of strategy to improve brand image and channel.
  • 70. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 70 3.5 RESEARCH METHODOLOGY Type of Research It is one kind of Explorative Research conducted to find out farmers views with regard to the subject. Here the researcher rises to understand and study various factors and ideas for getting information which can be applied for further development of concepts. Research Approach The research includes both Quantitative and Qualitative approach as it involves both numerical data about the sales and production and less tangible subjects like values, views, attitudes, perceptions of the farmers about the products. Universe Here the Universe for the study comprises all the farmers, Co-operatives and Dealers/Retailers of IFFCO products of Nuagaon and Balikuda block of Jagatsinghpur District. Sample Design Sample Unit - i) Farmer ii) Co-operative iii) Retailer Sample Size - The study will address samples. Farmers — 50
  • 71. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 71 3.6 DATA COLLECTION  Primary Source: A structured Interview Schedule was prepared for conducting interviews. Then data was collected based on the interview schedule which can be performed through personal Interviews and discussions with the farmers, society members, co- operative staffs and dealers of the two blocks.  Secondary Source:  Economic Survey Reports of Odisha Govt.  Census Reports of Govt. of India.  Information gathered from block office.  Data from IFFCO State Marketing Office, Bhubaneswar.  Data from IFFCO field offices of Jagatsinghpur District.  Data from various Co-operatives. 3.7 SAMPLING Here we have followed stratified Random Sampling Method under which selected one district out of the state. Then have chosen two blocks out of the seven blocks of the district at random and fifty samples belonging to the two blocks where IFFCO beneficiaries were available for disseminating information. The Jagatsinghpur District in the state of Odisha was sampled.
  • 72. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 72 3.8 PLAN OF ANALYSIS The result is to be critically analysed and every aspect of the objectives to be dealt with great detail. The findings are to be reported with the help of suitable graphs & diagrams wherever required. The comparative analytical findings are to be reported for most aspects of the objectives. 3.9 LIMITATION OF THE STUDY  Time allotted for such a study is very limited. The study requires adequate time and involvement of more number of researchers.  As the study covers vast areas, it becomes a hard task for an individual to get all the related data. The study could have been even better if it would have been done in a group.  Some farmers were seemed to be reluctant to give information as they are only concerned about the ground realities. It is their perception that they have nothing to do with the study.  Study of other districts and areas could have given some better results.
  • 73. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 73 3.10 CHAPTER SCHEME Chapter 1: Introduction It provides and insight and Introduction about Industry Scenario - Macro and Micro (relating to the industry of the dissertation) and Theoretical background of the topic. Chapter 2: Profile of the organization/s The chapter is concerned with the introduction and background of the Fertilizer Industry with reference to IFFCO as a whole which gives detailed information about the origin, growth, products, competitors, market share, milestones, awards, csr and its future. Chapter 3: Design of dissertation It consists of detailed coverage of the manner in which the report is prepared. This chapter helps to understand the practical steps adopted to reach the data and methods of analysis and interpreting the response. It also includes Literature review, Need for the study, Objectives of the study, Scope of the study, Methodology, Data collection, Sampling, Plan of analysis, and Limitations of the study. Chapter 4: Data analysis and Interpretation The data collected from the study will be presented and analyzed using appropriate statistical tools for interpretation and providing relevant suggestions. Chapter 5: Summary of findings, Conclusions and Suggestions The suggestions are based on the findings of the study and conclusion is made.
  • 74. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 74 CHAPTER - 4 4.1 DATA ANALYSIS AND INTERPRETATION Data analysis and interpretation plays an important role in turning quantity of paper into defensible, actionable sets of conclusions and reports. It is actually a set of method and technique that can be used to obtain information and insights from data. It can lead the researcher to get information and insights that would not be available. It can help to avoid erroneous judgments and conclusion. It can provide a background to help interpret and understand analysis conducted by others. Knowledge of power of data analysis techniques can constructively influence research objectives and research design. Data analysis can be a powerful aid to gain useful knowledge from the data collected. Inappropriate or misused data analysis has the potential to ruin a well-designed study and can suggest judgments and conclusions that are unclear and incomplete.
  • 75. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 75  IFFCO’s Production of Fertilizers from 2008-09 to 2012-13 Fig 4.1.1 Total Fertilizer Production from 2008-2013 Interpretation: The chart reveals that there is a continuous increasing orders in production from 70.12 Lakh MT during 2008-09 to 85.83 Lakh MT during 2012-13 except the slight fall in production during 2009-10. 0 10 20 30 40 50 60 70 80 90 100 2008-09 2009-10 2010-11 2011-12 2012-13 Total Fertilizer Production(Lakh MT)
  • 76. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 76  IFFCO’s Sales volume of Fertilizers from 2008-09 to 2012-13 Fig 4.1.2 Total Sales Volume of Fertilizer from 2008-2013 Interpretation: There is continuous increase in sales of fertilizers from 86.10 Lakh MT during 2008- 09 to 125.88 Lakh MT during 2012-13 0 20 40 60 80 100 120 140 2008-09 2009-10 2010-11 2011-12 2012-13 Total Sales Volume Of Fertilizer (Lakh MT)
  • 77. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 77 AGENCY WISE SALES OF IFFCO UREA IN ORISSA YEAR PRODUCT OSCMF OAIC COOP TOTAL 2009- 2010 UREA 135068 55627 50956 241651 2010- 2011 UREA 136667 39307 63806 239777 2011- 2012 UREA 137075 40450 62420 239945 2012- 2013 UREA 137508 42560 64450 244518 Table 4.1.3 Agency Wise Sales of IFFCO Urea in Odisha Fig 4.1.3 Agency Wise Sales from 2008-2013 0 50000 100000 150000 200000 250000 OSCMF OAIC COOP TOTAL Agency Wise Sales Of IFFCO Urea In Odisha 2009-2010 2010-2011 2011-2012 2012-2013
  • 78. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 78 Interpretation: Statistics tells that there is slight decrease in sales of Urea in Odisha from 2007-11. If we analyze it agency wise then the sales has no much fluctuated in case of co-operatives but there is was a great variation in other agencies. 4.1.4 Total Sales Volume of Fertiliser during Kharif & Rabi Season (MT) of Jagatsinghpur District Table 4.1.4 Total Sales Volume of fertilizer during Kharif and Rabi season YEAR KHARIF SEASON RABI SEASON TOTAL 2010-2011 5683.25 2484.60 8167.85 2011-2012 6280.45 3330.50 9610.95 2012-2013 9286.25 3506.00 12792.25 Interpretation: In Jagatsinghpur District, maximum fertiliser has been utilized during Kharif season as compared to Ravi season.
  • 79. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 79 4.1.1 DATA COLLECTED FROM THE RESPONDENTS OF JAGATSINGHPUR DISTRICT.  Educational attainment of the farmers. Education No. Of Farmers Illiterate 07 Primary 17 High-school 18 College 08 Table 4.1.1.1 Educational attainment of farmers Fig 4.1.1.1 Educational attainment of farmers Interpretation: About 39% farmers are having primary education. 42% farmers are matriculate. 3% farmers are having qualification more than matriculation and about 16% of farmers under study are illiterate. 16% 39% 42% 3% Educational Attainment Of Farmers Illiterate Primary High-school College
  • 80. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 80  Land holding capacity of farmers in hectors. Land Holding No. Of farmers Less Than One Hector 16 One To Five Hector 22 Five To Ten Hectors 7 More Than Ten Hectors 5 Table 4.1.1.2 Land Holding Capacity of farmers Fig 4.1.1.2 Land Holding Capacity of Farmers Interpretation: In this block 44% of the farmers are having one to five hectors of land, 14% are having 5 to 10 hectors, 10% farmers have more than 10 hectors of land and 32% of farmers have less than one hector of land. 32% 44% 14% 10% Land Holding Capacity Of farmers Less Than One Hector One To Five Hector Five To Ten Hectos More Than Ten Hectors
  • 81. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 81  Irrigation Facility of Agricultural Land. Fig 4.1.1.3 Irrigation facility to farmers Interpretation: In this block 40% of the farmers are having irrigation facilities where as 60% are having no irrigation facilities. 60% 40% Irrigation Facility To farmers Irrigated Land Non-Irrigated Land
  • 82. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 82  Source of information used for farming Source No. Of Farmers Radio 11 TV 19 Newspaper 7 Others (Govt Agri/KVK/FM) 13 Table 4.1.1.4 Sources of Information Used for farming Fig 4.1.1.4 Sources of Information Interpretation: It was shown that the farmers are mostly aware about the agriculture through the TV which became the source of information for 38% farmers. 22% farmers depend on Radio, 14% depend on the newspaper and 26% on different sources for farming information. 22% 38% 14% 26% Sources Of Information Radio TV Newspaper Others
  • 83. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 83  Brand selection of fertilizers by the farmers: Fertilizer Brands No. Of Farmers IFFCO 14 NAGARJUNA 10 IPL….MOP 05 NAVRATNA(PPL) 17 CIL 04 OTHERS 00 Table 4.1.1.5 Brand Selection Of fertilizers by Farmers Fig 4.1.1.5 Fertilizer Brand Selection Interpretation: 34% of farmers like to use Navaratna (PPL) fertilizers, whereas the IFFCO fertilizer was used by 28% farmers, 20% of farmers use Nagarjuna Brand of Urea, 10% of farmers use IPL products and 8% of farmers use CFL Products. 0 2 4 6 8 10 12 14 16 18 FERTILISERBRAND SELECTION NO. OF FARMERS
  • 84. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 84  Where do you get the fertilizer? CO-OPERATIVE 22% RETAILER & DEALERS 78% Table 4.1.1.6 Sources of getting Fertilizer Fig 4.1.1.6 Sources of getting Fertilizer Interpretation: About 22% of farmers of two blocks purchase fertilizers from cooperatives whereas about 78% of farmers purchase from retailers and dealers. 22% 78% SOURCES OF GETTING FERTILIZER CO-OPERATIVE RETAILER & DEALERS
  • 85. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 85  Market Situation of Urea fertilizer Fig 4.1.1.7 Demand of Urea Fertilizer Interpretation: In Urea segment of Raghunathpur and Balikuda block, the major competition is between IFFCO Urea and NAGARJUNA Urea, where IFFCO Urea has acquired 70% share of market and NAGARJUNA Urea has acquired 30% of market share. 30% 70% DEMAND OF UREA FERTILIZER NAGARJUNA UREA IFFCO UREA
  • 86. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 86  Market Situation of DAP fertilizer Fig 4.1.1.8 Market Situation of Dap Fertilizer Interpretation: In DAP segment in the block IFFCO has acquired 60% share of market where as Navaratna DAP has acquired 40% share. 60% 40% EFFECT OF DAP FERTILIZER IFFCO DAP NAVRATNA DAP
  • 87. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 87  Have you heard about NPK? Fig 4.1.1.9 Aware of NPK Product Interpretation: 67% of farmers were aware about NPK product where as 33% of farmers did not know the product. . 67% 33% AWAREOF NPK PRODUCT YES NO
  • 88. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 88  From which source you have heard about IFFCO? SOURCES RESPONDENTS RADIO 05 TV 08 NEWSPAPER 02 FRIENDS 09 AGRI MEETING/PP/IKSL/ITGI/SCS 22 OTHERS 04 Table 4.1.1.9 Sources of knowing about IFFCO Fig 4.1.1.10 Sources of Knowing about IFFCO Interpretation: Most of the farmers know about the product from Agri. Meetings/PP/IKSL/ITGI/SCS i.e. 44% 16% of fanners knew about IFFCO from TV, 10% knew from Radio, 4% of farmers know about the product from News Paper, 18% knows from friends and 8% came to know about the product from different sources 0 5 10 15 20 25 RADIO TV NEWSPAPER FRIENDS AGRI MEETINGS OTHERS SOURCES OF KNOWING ABOUT IFFCO RESPONDENTS
  • 89. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 89  Why prefer this IFFCO brand? VARIABLES NO. OF FARMERS LOW PRICE 08 EASY AVAILABILITY 19 PRODUCTIVITY 10 AGGRESSIVE PROMOTION 08 OTHER FARMERS ARE USING 05 Table 4.1.1.10 Why prefer IFFCO Fig 4.1.1.11 Why Prefer IFFCO Interpretation: It is evident from the above data that productivity or the quality of fertilizer plays an important role in purchasing a particular brand of fertilizer followed by availability and low price. 0 2 4 6 8 10 12 14 16 18 20 LOW PRICE EASY AVAILABILITY PRODUCTIVITY AGGRESSIVE PROMOTION OTHERS NO. OF FARMERS NO. OF FARMERS
  • 90. INDIAN FARMERS COOPERATIVE LIMITED KOSHYS INSTITUTE OF MANAGEMENT STUDIES 90  Opinion of PACS on the delay faced in product transportation. Generally transportation cost by road is more than the Rail transport. The company therefore prefers to transport major part by Rail. In such situation societies have to wait for their requirement and as a result delay occurs. In this respect, 40% of PACS agree to the above limitations in supplying the IFFCO product according to the consumer requirement. Fig 4.1.1.12 Opinion of PACS Regarding delay 40% 60% OPINION OF PACS REGARDING DELAY YES NO